Bourne End leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Bourne End will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some situations you may not qualify. There are prescribed timetables and formalities to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Bourne End,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bourne End valuers.
Teddy was the the leasehold proprietor of a conversion flat in Bourne End being marketed with a lease of a little over 59 years unexpired. Teddy on an informal basis approached his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be due on a lease extension were Teddy to exercise his statutory right. Teddy procured expert advice and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
Last Autumn we were contacted by Mr and Mrs. O Smith , who was assigned a lease of a first floor flat in Bourne End in January 1999. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by an additional years. Identical properties in Bourne End with a long lease were in the region of £270,000. The mid-range ground rent payable was £55 collected every twelve months. The lease elapsed on 27 November 2101. Given that there were 76 years left we approximated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus costs.
Last February we were called by Mrs M Wright , who bought a basement flat in Bourne End in July 2001. The dilemma was if we could approximate the premium would be to extend the lease by 90 years. Identical residencies in Bourne End with 100 year plus lease were valued around £173,800. The average amount of ground rent was £65 invoiced monthly. The lease elapsed on 21 March 2080. Given that there were 55 years unexpired we estimated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of legals.