There is no doubt about it a leasehold flat or house in Bourne End is a wasting asset as a result of the shortening lease. Where the lease has, more than one hundred years to run then this decrease may be of little impact that being said there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner as opposed to later. Many flat owners in Bourne End will meet the qualifying criteria; however a conveyancer should be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Bourne End with in excess of 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure 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 conveyancer we work with provide it.
Harrison owned a conversion apartment in Bourne End on the market with a lease of a little over sixty years outstanding. Harrison informally contacted his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be due on a lease extension were Harrison to exercise his statutory right. Harrison obtained expert legal guidance and secured an acceptable resolution informally and sell the property.
In 2014 we were called by Mr and Mrs. R Hernández who, having bought a first floor flat in Bourne End in August 1995. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Comparative homes in Bourne End with a long lease were worth £203,200. The mid-range amount of ground rent was £65 collected quarterly. The lease ended in 2086. Having 61 years remaining we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of fees.
Dr Callum Rivera moved into a purpose-built flat in Bourne End in October 2004. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Identical properties in Bourne End with a long lease were valued about £260,000. The mid-range amount of ground rent was £50 billed monthly. The lease elapsed in 2097. Taking into account 72 years outstanding we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.