When it comes to residential leasehold property in Booker, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Residents in Booker with a lease approaching 81 years left should seriously think of extending it as soon as possible. When the lease term has fewer than 80 years remaining, under the relevant legislation the landlord is entitled to calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in Booker with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Retaining our service will provide you increased control over the value of your Booker leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Callum, came very close to the eighty-year mark with the lease on his purpose- built apartment in Booker. Having bought his flat two decades ago, the length of the lease was of little interest. by good luck, he realised he needed to take steps soon on a lease extension. Callum extended the lease just in the nick of time last April. Callum and the landlord who owned the flat above subsequently agreed on the final figure of £6,000 . If the lease had dropped below eighty years, the amount would have increased by a minimum £900.
Last April we were contacted by Mr and Mrs. Y Díaz , who completed a purpose-built apartment in Booker in November 2004. The question was if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparable premises in Booker with an extended lease were worth £245,000. The mid-range ground rent payable was £50 billed quarterly. The lease ran out on 6 August 2092. Having 68 years unexpired we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
Mr Ibrahim Martin purchased a one bedroom flat in Booker in October 2004. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Booker with an extended lease were valued around £285,000. The mid-range ground rent payable was £55 billed every twelve months. The lease expired in 2103. Given that there were 79 years remaining we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of expenses.