With a long leasehold property in Boscombe, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are fewer than 80 years left. Leasehold owners in Boscombe with a lease approaching 81 years remaining should seriously consider extending it sooner as opposed to later. Once a lease has less than eighty years left, under the current statute the landlord can calculate and levy a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Yorkshire 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. |
Lease extensions in Boscombe can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer with experience in this area.
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 dealing with Boscombe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Oscar, came perilously near to the 80-year mark with the lease on his studio flat in Boscombe. In buying his flat two decades ago, the unexpired term was of minimal significance. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Oscar extended the lease just ahead of time in June. Oscar and the landlord who owned the flat above eventually agreed on a premium of £6,000 . If the lease had gone below eighty years, the price would have become more exhorbitant by at least £925.
In 2013 we were contacted by Ms Ellen François who, having completed a recently refurbished apartment in Boscombe in March 2010. The question was if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Identical residencies in Boscombe with 100 year plus lease were valued about £208,200. The mid-range amount of ground rent was £65 invoiced monthly. The lease expired on 2 June 2086. Having 61 years unexpired we approximated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including professional charges.
In 2013 we were called by Mr and Mrs. N André who, having moved into a recently refurbished apartment in Boscombe in March 1998. The question was if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Similar homes in Boscombe with an extended lease were valued about £260,000. The average amount of ground rent was £50 billed annually. The lease came to a finish on 22 June 2097. Given that there were 72 years left we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.