As the length of the unexpired term of a Bordon domestic lease diminished so does its value and therefore the value of your property. Where the lease has, more than 99 years to run then this decrease may be of little impact that being said there will become a point in time when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending without delay. Many flat owners in Bordon will qualify for this right; however a lawyer will be able to confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises 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. |
| 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. |
| 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. |
The conveyancing solicitors that we work with handle Bordon 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.
Two years ago Joseph, started to get close to the eighty-year mark with the lease on his first floor apartment in Bordon. Having purchased his home 18 years previously, the length of the lease was of no interest. Luckily, it dawned on him that he needed to take steps soon on a lease extension. Joseph arranged for a lease extension just under the wire last March. Joseph and the landlord who owned the flat above eventually settled on the final figure of £5,000 . If he failed to meet the deadline, the price would have increased by a minimum £1,150.
Mrs Millie Moore acquired a purpose-built apartment in Bordon in September 2003. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Bordon with 100 year plus lease were valued around £254,200. The average ground rent payable was £60 invoiced per annum. The lease ended on 8 October 2076. Considering the 51 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 not including legals.
Dr T Flores owned a basement flat in Bordon in August 2006. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparative flats in Bordon with a long lease were in the region of £210,600. The average amount of ground rent was £45 invoiced per annum. The lease finished on 21 November 2087. Taking into account 62 years remaining we estimated the compensation to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of professional charges.