Bourne End leases on residential properties are gradually losing value. Where your lease has about ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for a lease extension to take place before the term of the current lease falls below eighty years - otherwise a higher amount will be due. Leasehold owners in Bourne End will usually qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not be entitled. There are prescribed timetables and formalities to follow once the process has started so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 get guidance from a conveyancer and surveyor with experience in this area.
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.
In the wake of 9 months of unsuccessful discussions with the freeholder of her basement flat in Bourne End, Catherine started the lease extension process just as the lease was approaching the crucial eighty-year threshold. The legal work completed in May 2006. The landlord’s fees were negotiated to a tad over six hundred pounds.
Dr G King owned a newly refurbished apartment in Bourne End in September 2008. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Bourne End with an extended lease were worth £260,000. The average ground rent payable was £50 invoiced yearly. The lease came to a finish in 2097. Considering the 72 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including legals.
Mr and Mrs. B Johnson was assigned a lease of a garden flat in Bourne End in September 1995. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Bourne End with a long lease were valued around £254,200. The mid-range ground rent payable was £60 invoiced every twelve months. The lease finished on 22 February 2076. Taking into account 51 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 not including costs.