The re-sale value of a leasehold property in Bourne End is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be addressed ahead of the 80 year threshold. Leasehold Reform legislation enables Bourne End qualifying lessees to obtain a new lease which will be for the current unexpired lease term plus an additional term of ninety years. The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 |
| 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. |
Lease extensions in Bourne End can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Bourne End lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Aaron, started to get close to the eighty-year mark with the lease on his studio flat in Bourne End. In buying his flat 19 years ago, the lease term was of minimal concern. Luckily, he realised he needed to take action soon on a lease extension. Aaron was able to extend his lease just ahead of time last May. Aaron and the landlord who owned the flat above in the end agreed on an amount of £5,500 . If he not met the deadline, the amount would have become more costly by a minimum £1,100.
In 2012 we were contacted by Dr Lucy Leroy who, having purchased a studio flat in Bourne End in September 2004. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Similar homes in Bourne End with 100 year plus lease were in the region of £285,000. The average amount of ground rent was £55 billed per annum. The lease concluded in 2105. Given that there were 79 years remaining we calculated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.
In 2009 we were e-mailed by Mr William Allen who, having was assigned a lease of a basement flat in Bourne End in March 2003. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Similar homes in Bourne End with a long lease were valued around £193,400. The mid-range ground rent payable was £65 collected monthly. The lease terminated on 2 January 2085. Considering the 59 years left we calculated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus professional charges.