It’s a harsh truth that a Bournemouth residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Bournemouth property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining drops under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Bournemouth will be able to extend under the legislation; however a lawyer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
Leasehold properties in Bournemouth 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 circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Barnsley Building Society | |
| Halifax | |
| National Westminster Bank |
Lease extensions in Bournemouth can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Bournemouth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Seth was the the leasehold proprietor of a conversion apartment in Bournemouth being marketed with a lease of a little over fifty eight years remaining. Seth on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Seth to invoke his statutory right. Seth obtained expert advice and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Last year we were approach by Mr and Mrs. F Clarke , who was assigned a lease of a one bedroom apartment in Bournemouth in April 1999. We are asked if we could estimate the premium would be to prolong the lease by 90 years. Comparative flats in Bournemouth with 100 year plus lease were in the region of £176,200. The average ground rent payable was £65 billed quarterly. The lease end date was in 2082. Given that there were 56 years as a residual term we approximated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of professional charges.
Last year we were phoned by Mr Caleb Vincent , who took over the lease of a one bedroom apartment in Bournemouth in January 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable properties in Bournemouth with a long lease were worth £242,600. The average ground rent payable was £45 invoiced every twelve months. The lease finished in 2093. Given that there were 67 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 plus professional charges.