Bourne End leases on residential properties are gradually losing value. Where your lease has about 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the current lease drops lower than eighty years - otherwise a higher premium will be due. Flat owners in Bourne End will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process is initiated so it’s best to be guided by a conveyancer during the process.
Leasehold properties in Bourne End with in excess of one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Bourne End can be a difficult process. We recommend you obtain professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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.
Off the back of protracted discussions with the landlord of her two bedroom flat in Bourne End, Holly commenced the lease extension process as the 80 year mark was quickly nearing. The transaction completed in September 2014. The freeholder’s charges were kept to an absolute minimum.
Last Spring we were called by Mrs Morgan Martin , who acquired a studio flat in Bourne End in May 2007. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparable residencies in Bourne End with an extended lease were valued around £260,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease expiry date was in 2098. Considering the 72 years as a residual term we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Last Autumn we were phoned by Mr and Mrs. M Patel , who completed a ground floor flat in Bourne End in August 1999. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Similar homes in Bourne End with 100 year plus lease were worth £261,600. The mid-range ground rent payable was £60 collected quarterly. The lease lapsed in 2078. Having 52 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of expenses.