Main reasons to commence your Bournemouth lease extension

Main reasons to start your Bournemouth lease extension today:

Increase your lease and increase your Bournemouth property value

Bournemouth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Bournemouth residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Bournemouth you really ought to investigate if your lease has between 70 and ninety years left. There are compelling reasons why a Bournemouth leaseholder with a lease having around 80 years unexpired should take steps to ensure that a lease extension is put in place without delay

Bournemouth property with a lease extension has roughly the same value as a freehold

Leasehold premises in Bournemouth with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.

Lending institutions may not loan monies on a short lease

Banks and Building Societies have set criteria when lending monies secured on leasehold homes. Some will simply refrain from lending at all once the residual lease term goes beneath a certain unexpired lease term. Many Lending institutions will not consider property with an unexpired term of less than seventy years as acceptable security. In addition to impacting your ability to sell, it is also relevant where you are seeking to remortgage your Bournemouth property.

Get in touch with one of our Bournemouth lease extension solicitors or enfranchisement solicitors

Irrespective of whether you are a tenant or a landlord in Bournemouth,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bournemouth valuers.

Bournemouth Lease Extension Case Summaries:

Ryan, Bournemouth, Dorset

Last year Ryan, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Bournemouth. In buying his property two decades ago, the lease term was of little interest. by good luck, he recognised he would soon be paying an inflated amount for Extending the lease. Ryan extended the lease at the eleventh hour in August. Ryan and the freeholder via the management company eventually settled on the final figure of £5,500 . If he not met the deadline, the premium would have increased by at least £925.

Bournemouth case:

In 2010 we were approached by Dr Ellen Gómez who, having purchased a studio flat in Bournemouth in May 1995. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparable residencies in Bournemouth with a long lease were worth £200,800. The average ground rent payable was £65 billed monthly. The lease came to a finish in 2086. Considering the 60 years left we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of costs.

Bournemouth case:

In 2011 we were e-mailed by Ms Y Mason who, having took over the lease of a basement apartment in Bournemouth in April 2001. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparable premises in Bournemouth with an extended lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced every twelve months. The lease ended on 7 May 2097. Given that there were 71 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.