The only way is down when it comes to Bournemouth lease terms. Bournemouth properties that have a residual term less than than eighty years will reduce in market price at a rapid rate, and the cost of extending your lease will increase.
Leasehold properties in Bournemouth with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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 will provide you enhanced control over the value of your Bournemouth leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted negotiations with the freeholder of her one bedroom flat in Bournemouth, Kelsey commenced the lease extension process just as her lease was approaching the all-important 80-year threshold. The lease extension was finalised in April 2011. The landlord’s costs were restricted to slightly above 650 pounds.
Last Winter we were approach by Dr Freddie Wood , who took over the lease of a newly refurbished flat in Bournemouth in November 2000. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative properties in Bournemouth with a long lease were in the region of £218,000. The average ground rent payable was £45 invoiced per annum. The lease elapsed in 2089. Given that there were 63 years remaining we approximated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 plus fees.
Dr I Robinson was assigned a lease of a ground floor flat in Bournemouth in May 2000. The question was if we could estimate the compensation to the landlord would be for a 90 year lease extension. Comparable premises in Bournemouth with an extended lease were in the region of £270,000. The average ground rent payable was £55 collected every twelve months. The lease finished on 2 May 2100. Considering the 74 years outstanding we estimated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.