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 becomes more expensive. It is the case that most Bournemouth tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Bournemouth you would be well advised to see if your lease has between seventy and ninety years left. There are good reasons why a Bournemouth leaseholder with a lease having around 80 years remaining should take action to ensure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Lease extensions in Bournemouth can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer 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.
Benjamin was the the leasehold owner of a studio apartment in Bournemouth on the market with a lease of a few days over sixty years remaining. Benjamin informally spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Benjamin to exercise his statutory right. Benjamin obtained expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Last Winter we were approach by Mr W Peterson , who owned a first floor flat in Bournemouth in July 1996. We are asked if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparative properties in Bournemouth with 100 year plus lease were in the region of £246,800. The average ground rent payable was £60 collected annually. The lease end date was on 21 April 2076. Considering the 50 years unexpired we estimated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 not including professional charges.
In 2012 we were phoned by Mr Lewis Morgan who, having was assigned a lease of a studio apartment in Bournemouth in March 1998. We are asked if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Similar residencies in Bournemouth with an extended lease were worth £208,200. The mid-range ground rent payable was £65 invoiced quarterly. The lease ran out in 2087. Considering the 61 years left we estimated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 not including expenses.