Bourne End leases on domestic properties are gradually losing value. Where your lease has about ninety years left, you should start thinking about a lease extension. If lease term falls under eighty years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Bourne End will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and steps to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Bourne End with in excess of one hundred 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 freehold 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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. |
Irrespective of whether you are a tenant or a landlord in Bourne End,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bourne End valuers.
Last October Lucas, started to get near to the 80-year mark with the lease on his studio flat in Bourne End. Having bought his flat 19 years ago, the unexpired term was of minimal concern. by good luck, it dawned on him that he would soon be paying way over the odds for Extending the lease. Lucas was able to extend his lease just ahead of time in April. Lucas and the landlord who owned the flat above subsequently agreed on an amount of £5,000 . If the lease had dropped lower than eighty years, the premium would have become more exhorbitant by a minimum £1,100.
In 2012 we were called by Mrs Catherine Ward who, having acquired a purpose-built flat in Bourne End in April 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Comparative residencies in Bourne End with an extended lease were worth £246,800. The average amount of ground rent was £60 collected every twelve months. The lease ran out on 10 October 2076. Considering the 50 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 plus costs.
Dr Georgia Phillips moved into a one bedroom flat in Bourne End in January 1998. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparable premises in Bourne End with a long lease were in the region of £208,200. The mid-range ground rent payable was £65 collected quarterly. The lease terminated on 28 May 2087. Taking into account 61 years remaining we calculated the compensation to the landlord for the lease extension to be within £20,000 and £23,000 not including legals.