The market value of a leasehold property in Booker is impacted by how many years the lease has remaining. If it is close to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be addressed prior to the 80 year threshold. Leasehold Reform legislation entitles Booker qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Booker can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 a wealth of experience procuring Booker lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Gabriel owned a conversion flat in Booker being sold with a lease of a few days over 72 years outstanding. Gabriel on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Gabriel to invoke his statutory right. Gabriel obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and sell the flat.
Dr E Díaz completed a ground floor apartment in Booker in January 2002. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar flats in Booker with a long lease were valued around £200,800. The mid-range amount of ground rent was £65 collected quarterly. The lease finished in 2085. Considering the 60 years outstanding we calculated the premium to the landlord to extend the lease to be within £20,900 and £24,200 plus expenses.
Dr Aimee Green purchased a ground floor flat in Booker in July 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by ninety years. Comparative residencies in Booker with 100 year plus lease were worth £255,000. The average ground rent payable was £50 invoiced monthly. The lease concluded on 2 January 2096. Having 71 years remaining we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including costs.