Unfortunately that a Bournemouth residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Bournemouth property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be due. The majority of flat owners in Bournemouth will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 procure professional help 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 in-depth market knowledge 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.
Trailing lengthy discussions with the landlord of her two bedroom apartment in Bournemouth, Nicole commenced the lease extension process just as her lease was coming close to the all-important 80-year mark. The lease extension was finalised in July 2007. The landlord’s charges were kept to an absolute minimum.
Mr Adam Rodríguez acquired a garden apartment in Bournemouth in January 1998. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable homes in Bournemouth with an extended lease were valued around £232,800. The average amount of ground rent was £45 collected yearly. The lease terminated in 2091. Taking into account 65 years remaining we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.
Mr and Mrs. T Leroy bought a newly refurbished apartment in Bournemouth in June 1995. The dilemma was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Identical homes in Bournemouth with a long lease were valued around £275,000. The mid-range amount of ground rent was £55 billed per annum. The lease ended on 24 June 2102. Having 76 years outstanding we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus legals.