Market Bosworth leases on domestic deteriorating in value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be payable. Leasehold owners in Market Bosworth will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain circumstances you may not qualify. There are also strict timetables and procedures to follow once the process is initiated so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Chelsea Building Society | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Market Bosworth can be a difficult process. We recommend you obtain professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Market Bosworth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Teddy owned a high value apartment in Market Bosworth on the market with a lease of just over 59 years outstanding. Teddy on an informal basis spoke with his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £100 annually. No ground rent would be payable on a lease extension were Teddy to invoke his statutory right. Teddy obtained expert advice and was able to make an informed decision and handle with the matter and sell the flat.
Mr D Ward was assigned a lease of a one bedroom apartment in Market Bosworth in February 2008. The question was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable residencies in Market Bosworth with a long lease were worth £174,200. The mid-range amount of ground rent was £55 collected yearly. The lease expired in 2077. Considering the 51 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus costs.
In 2012 we were contacted by Ms S Morgan who, having completed a newly refurbished flat in Market Bosworth in June 2003. We are asked if we could estimate the price could be to extend the lease by ninety years. Identical premises in Market Bosworth with an extended lease were valued around £285,000. The mid-range ground rent payable was £45 invoiced yearly. The lease came to a finish on 16 July 2097. Having 71 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 not including professional charges.