With a residential leasehold property in Bourne End, you are actually purchasing an entitlement to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than eighty years left. Leasehold owners in Bourne End with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When the lease term has below eighty years remaining, under the current legislation the freeholder can calculate and charge a greater amount, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as 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. |
| 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. |
| Coventry Building Society | 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. |
Irrespective of whether you are a tenant or a freeholder in Bourne End,the lease extension solicitors that we work with will always be prepared 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.
In the wake of 6 months of lengthy discussions with the freeholder of her basement flat in Bourne End, Victoria started the lease extension process as the eighty year threshold was rapidly nearing. The transaction was finalised in April 2010. The freeholder’s charges were kept to an absolute minimum.
In 2013 we were called by Mr and Mrs. E Clarke who, having purchased a ground floor flat in Bourne End in October 2006. The question was if we could estimate the premium would be for a 90 year extension to my lease. Identical flats in Bourne End with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease elapsed on 9 March 2097. Considering the 71 years left we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.
In 2014 we were phoned by Dr F Laurent who, having took over the lease of a garden flat in Bourne End in March 2011. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Similar flats in Bourne End with an extended lease were in the region of £254,200. The mid-range amount of ground rent was £60 billed quarterly. The lease ended in 2077. Considering the 51 years left we estimated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 not including costs.