With a long leasehold property in Boscombe, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly when there are fewer than 80 years remaining. Leasehold owners in Boscombe with a lease drawing near to 81 years left should seriously think of extending it sooner as opposed to later. When a lease has fewer than 80 years remaining, under the current statute the landlord can calculate and levy a larger amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold premises in Boscombe with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The conveyancing solicitors that we work with undertake Boscombe 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 conveyancer we work with provide it.
After unsuccessful negotiations with the landlord of her garden apartment in Boscombe, Imogen commenced the lease extension process as the 80 year mark was swiftly coming. The lease extension completed in November 2010. The landlord’s costs were kept to an absolute minimum.
Dr Grace Wright purchased a studio apartment in Boscombe in April 2005. The question was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Similar properties in Boscombe with 100 year plus lease were worth £260,000. The average amount of ground rent was £50 billed yearly. The lease lapsed in 2097. Having 73 years remaining we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. L Nguyen took over the lease of a basement flat in Boscombe in August 2010. We are asked if we could estimate the price would likely be to extend the lease by ninety years. Comparable flats in Boscombe with an extended lease were valued about £264,000. The average ground rent payable was £60 collected yearly. The lease expired in 2077. Taking into account 53 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £37,100 and £42,800 plus costs.