Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Bournemouth. Clearly, the length of lease remaining reduces over time. This is often overlooked and only raises itself as an issue when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Qualifying long lease owners in Bournemouth have the right to extend the lease for an additional 90 years under statute. Do give careful consideration before putting off your Bournemouth lease extension. Holding off the cost now only increases the price you will eventually have to pay to extend your lease
Leasehold properties in Bournemouth with more than one hundred years left on the lease are sometimes regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Santander |
Using our service will provide you increased control over the value of your Bournemouth leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Cameron was the the leasehold proprietor of a studio flat in Bournemouth on the market with a lease of a little over 59 years left. Cameron informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Cameron to invoke his statutory right. Cameron obtained expert advice and secured satisfactory resolution informally and readily saleable.
Last Spring we were e-mailed by Mr and Mrs. P Michel , who took over the lease of a one bedroom flat in Bournemouth in April 2007. The question was if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparative flats in Bournemouth with a long lease were in the region of £225,400. The average amount of ground rent was £45 invoiced yearly. The lease terminated on 11 August 2090. Given that there were 64 years unexpired we approximated the compensation to the landlord for the lease extension to be within £15,200 and £17,600 not including expenses.
In 2013 we were phoned by Mr and Mrs. D Lambert who, having completed a purpose-built flat in Bournemouth in January 2006. The question was if we could approximate the premium would be for a 90 year lease extension. Identical properties in Bournemouth with 100 year plus lease were in the region of £270,000. The mid-range ground rent payable was £55 billed yearly. The lease lapsed in 2101. Considering the 75 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.