Bourne End leases on domestic properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Bourne End will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm your eligibility. In some cases you may not be entitled. There are prescribed deadlines and formalities to comply with once the process is triggered so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold premises in Bourne End with more than one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Regardless of whether you are a tenant or a freeholder in Bourne End,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bourne End valuers.
Max was the the leasehold owner of a studio flat in Bourne End on the market with a lease of fraction over 61 years outstanding. Max informally approached his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Max to invoke his statutory right. Max procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2012 we were approached by Mr and Mrs. J Roberts who, having moved into a first floor flat in Bourne End in September 2012. The question was if we could shed any light on how much (roughly) price could be for a ninety year extension to my lease. Comparative properties in Bourne End with a long lease were valued around £290,000. The mid-range amount of ground rent was £60 collected quarterly. The lease ran out on 19 February 2106. Given that there were 80 years unexpired we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including legals.
Last Spring we were e-mailed by Dr H Alexander , who acquired a one bedroom apartment in Bourne End in May 2010. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparative properties in Bourne End with an extended lease were valued about £200,800. The mid-range amount of ground rent was £65 billed quarterly. The lease elapsed in 2086. Taking into account 60 years remaining we approximated the premium to the freeholder for the lease extension to be within £20,900 and £24,200 not including legals.