The nearer a residential lease in Bourne End gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of one hundred years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease sooner rather than later. Many flat owners in Bourne End will meet the qualifying criteria; however a conveyancer can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Bourne End leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the freeholder of her studio flat in Bourne End, Courtney started the lease extension process as the 80 year mark was swiftly advancing. The legal work was finalised in October 2006. The landlord’s charges were kept to an absolute minimum.
Mr and Mrs. N Morris bought a first floor apartment in Bourne End in February 1997. The question was if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Identical homes in Bourne End with an extended lease were worth £270,000. The mid-range ground rent payable was £55 billed per annum. The lease elapsed on 13 November 2101. Taking into account 75 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.
Mr and Mrs. J Roberts took over the lease of a studio flat in Bourne End in February 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative properties in Bourne End with a long lease were in the region of £173,800. The average ground rent payable was £65 collected monthly. The lease expired on 11 January 2081. Considering the 55 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus professional charges.