Bournemouth leases on residential properties are gradually losing value. if your lease has approximately ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. Leasehold owners in Bournemouth will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain circumstances you may not qualify. There are prescribed deadlines and steps to follow once the process is triggered so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold premises in Bournemouth with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The lawyers that we work with procure Bournemouth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Last year Theo, came seriously close to the 80-year threshold with the lease on his ground floor apartment in Bournemouth. Having bought his home two decades ago, the unexpired term was of little relevance. Luckily, he noticed he needed to take action soon on a lease extension. Theo was able to extend his lease at the eleventh hour last January. Theo and the freeholder in the end agreed on the final figure of £5,500 . If he failed to meet the deadline, the premium would have increased by at least £900.
Mrs Jordan Garcia owned a recently refurbished flat in Bournemouth in February 2008. The dilemma was if we could shed any light on how much (approximately) price would be for a ninety year lease extension. Comparative properties in Bournemouth with an extended lease were in the region of £242,600. The average ground rent payable was £45 billed monthly. The lease ended in 2093. Taking into account 67 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus legals.
Dr O Thompson purchased a one bedroom flat in Bournemouth in October 2005. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by 90 years. Comparable premises in Bournemouth with a long lease were valued about £280,000. The average ground rent payable was £55 collected per annum. The lease finished in 2104. Having 78 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.