With a residential leasehold property in Bournemouth, you effectively rent it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive especially once there are fewer than 80 years remaining. Residents in Bournemouth with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. Once the lease term has under eighty years remaining, under the current legislation the landlord can calculate and demand a greater amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Bournemouth with over 100 years unexpired 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 service 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Using our service will provide you enhanced control over the value of your Bournemouth leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Adam was the the leasehold proprietor of a studio apartment in Bournemouth on the market with a lease of just over fifty eight years outstanding. Adam informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Adam to invoke his statutory right. Adam obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the property.
In 2014 we were approached by Dr O Anderson who, having purchased a studio flat in Bournemouth in August 2002. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Identical properties in Bournemouth with 100 year plus lease were worth £183,600. The average ground rent payable was £65 billed per annum. The lease ran out on 9 November 2083. Considering the 57 years left we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including professional charges.
Last August we were approach by Mr and Mrs. S Reed , who was assigned a lease of a garden flat in Bournemouth in March 2002. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Identical homes in Bournemouth with 100 year plus lease were worth £250,000. The average ground rent payable was £50 billed quarterly. The lease finished in 2094. Considering the 68 years outstanding we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus fees.