Unfortunately that a Bozeat residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Bozeat property market.Once your lease nears 85ish years, you need to start considering a lease extension. If the number of years remaining drops below eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Bozeat will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancer throughout the process.
Leasehold properties in Bozeat with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers that we work with procure Bozeat lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Oliver was the the leasehold owner of a 2 bedroom flat in Bozeat on the market with a lease of a little over 61 years left. Oliver informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Oliver to invoke his statutory right. Oliver procured expert advice and secured satisfactory deal informally and sell the flat.
Ms Morgan Dupont purchased a garden apartment in Bozeat in July 2003. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Comparable premises in Bozeat with a long lease were worth £255,000. The mid-range ground rent payable was £50 invoiced per annum. The lease elapsed in 2095. Given that there were 70 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.
In 2013 we were approached by Mr and Mrs. W González who, having purchased a garden apartment in Bozeat in October 2002. The dilemma was if we could approximate the premium could be for a ninety year extension to my lease. Identical premises in Bozeat with 100 year plus lease were valued around £246,800. The average amount of ground rent was £60 collected per annum. The lease came to a finish in 2075. Given that there were 50 years unexpired we calculated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 exclusive of fees.