The market value of Bournemouth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is less than 80 years
Leasehold properties in Bournemouth with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Engaging our service gives you increased control over the value of your Bournemouth leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Kyle was the the leasehold owner of a studio apartment in Bournemouth on the market with a lease of a few days over fifty eight years outstanding. Kyle informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were Kyle to invoke his statutory right. Kyle obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Last Summer we were contacted by Ms Kelsey Kelly , who was assigned a lease of a one bedroom flat in Bournemouth in February 2008. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Identical homes in Bournemouth with 100 year plus lease were valued around £270,000. The mid-range ground rent payable was £55 collected monthly. The lease came to a finish in 2099. Considering the 74 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of legals.
In 2012 we were phoned by Dr G Brown who, having took over the lease of a basement apartment in Bournemouth in June 2012. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative homes in Bournemouth with a long lease were valued around £166,400. The mid-range ground rent payable was £60 collected per annum. The lease expired in 2079. Having 54 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 not including professional charges.