There is no doubt about it a leasehold flat or house in Bourne End is a wasting asset as a result of the diminishing lease term. If the lease has, over 125 years remaining then this decrease may be fractional however there will become a stage when a lease has under than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner than later. The majority of flat owners in Bourne End will qualify for this right; nevertheless a lawyer can confirm if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancing solicitors 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 lawyer we work with provide it.
Following unsuccessful correspondence with the freeholder of her garden apartment in Bourne End, Daisy started the lease extension process as the 80 year threshold was swiftly coming. The legal work completed in April 2013. The freeholder’s charges were restricted to slightly above 650 pounds.
In 2013 we were e-mailed by Dr A Dupont who, having took over the lease of a one bedroom apartment in Bourne End in January 2004. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Identical residencies in Bourne End with 100 year plus lease were worth £173,800. The average ground rent payable was £65 collected quarterly. The lease expiry date was on 28 May 2080. Considering the 55 years remaining we calculated the premium to the landlord for the lease extension to be within £31,400 and £36,200 not including professional charges.
Last Spring we were phoned by Ms G Roberts , who acquired a garden apartment in Bourne End in March 2010. We are asked if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparative flats in Bourne End with a long lease were in the region of £235,200. The mid-range amount of ground rent was £45 invoiced monthly. The lease lapsed in 2091. Taking into account 66 years outstanding we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.