The re-sale value of a leasehold property in Bourne End is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that a lease extension can be finalised in advance of the 80 year cut off point. Statute enables Bourne End qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Bourne End with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Barnsley Building Society | |
| The Mortgage Works | |
| Virgin |
The lawyers that we work with undertake 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 conveyancing solicitor we work with provide it.
Leo was the the leasehold proprietor of a high value flat in Bourne End on the market with a lease of just over fifty eight years unexpired. Leo on an informal basis contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Leo to exercise his statutory right. Leo obtained expert legal guidance and secured satisfactory resolution informally and readily saleable.
Last Winter we were called by Dr Dylan Miller , who moved into a first floor flat in Bourne End in January 2002. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative homes in Bourne End with a long lease were worth £250,000. The mid-range ground rent payable was £50 invoiced annually. The lease elapsed on 4 February 2094. Having 68 years left we estimated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.
In 2013 we were contacted by Mr and Mrs. H André who, having acquired a first floor apartment in Bourne End in September 2012. The question was if we could approximate the premium would likely be for a 90 year lease extension. Similar homes in Bourne End with an extended lease were worth £285,000. The average amount of ground rent was £55 billed per annum. The lease concluded in 2105. Considering the 79 years left we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including costs.