Bourne End residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a set term.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure 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.
Hunter owned a studio apartment in Bourne End on the market with a lease of fraction over 61 years unexpired. Hunter informally spoke with his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Hunter to exercise his statutory right. Hunter procured expert advice and secured satisfactory resolution informally and sell the property.
In 2010 we were contacted by Dr Max Williams who, having completed a recently refurbished apartment in Bourne End in July 2009. We are asked if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative premises in Bourne End with a long lease were worth £215,600. The average amount of ground rent was £45 invoiced annually. The lease ran out in 2087. Taking into account 62 years outstanding we approximated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including fees.
Last Winter we were phoned by Ms P Baker , who owned a basement apartment in Bourne End in October 1996. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar flats in Bourne End with an extended lease were in the region of £265,000. The mid-range amount of ground rent was £50 invoiced annually. The lease ran out on 17 November 2098. Given that there were 73 years outstanding we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including expenses.