The value of Bourne End leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with undertake Bourne End 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 protracted discussions with the landlord of her leasehold apartment in Bourne End, Olivia initiated the lease extension process just as her lease was nearing the crucial 80-year deadline. The legal work was concluded in August 2013. The landlord’s fees were kept to an absolute minimum.
In 2014 we were approached by Mr and Mrs. H Rogers who, having was assigned a lease of a recently refurbished apartment in Bourne End in March 1999. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Identical homes in Bourne End with an extended lease were in the region of £245,000. The average ground rent payable was £45 collected per annum. The lease finished in 2092. Taking into account 68 years left we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.
Mr and Mrs. J Thomas acquired a ground floor apartment in Bourne End in April 2011. We are asked if we could estimate the price would be for a ninety year lease extension. Similar flats in Bourne End with a long lease were worth £285,000. The average ground rent payable was £55 invoiced per annum. The lease termination date was in 2103. Having 79 years remaining we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.