When it comes to domestic leasehold property in Bourne End, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are fewer than 80 years left. Anyone in Bourne End with a lease approaching 81 years left should seriously consider extending it sooner than later. When the lease term has below 80 years left, under the current statute the freeholder is entitled to calculate and charge a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | 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 secure guidance from a lawyer 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 a wealth of experience dealing with 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.
During the course of the last few months Harry, came seriously close to the 80-year threshold with the lease on his first floor apartment in Bourne End. In buying his flat 19 years ago, the unexpired term was of little importance. As luck would have it, he realised he needed to take action soon on a lease extension. Harry arranged for a lease extension just in the nick of time in July. Harry and the freeholder in the end agreed on a premium of £6,000 . If the lease had dropped to less than eighty years, the price would have increased by at least £1,050.
Last year we were e-mailed by Mrs W Gómez , who moved into a garden flat in Bourne End in February 2007. The dilemma was if we could approximate the premium would likely be to extend the lease by ninety years. Similar homes in Bourne End with 100 year plus lease were worth £191,000. The average amount of ground rent was £65 invoiced monthly. The lease termination date was in 2083. Taking into account 58 years left we calculated the compensation to the landlord to extend the lease to be within £23,800 and £27,400 plus fees.
Last month we were approach by Mr Jackson Stewart , who owned a studio apartment in Bourne End in May 2009. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar homes in Bourne End with an extended lease were worth £250,000. The mid-range ground rent payable was £50 billed monthly. The lease lapsed in 2094. Having 69 years unexpired we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.