Main reasons to start your Bournemouth lease extension
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Why you should commence your Bournemouth lease extension today: </h3>
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Increase your lease and increase your <a href="http://www.lendermonitor.com/conveyancing/loc/bournemouth">Bournemouth</a> property value </h4>
<p> With a long leasehold property in Bournemouth, you are actually buying an entitlement to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Residents in Bournemouth with a lease drawing near to 81 years left should seriously consider extending it without delay. Once a lease has under eighty years remaining, under the relevant statute the landlord is entitled to calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due. <h4>An extended lease has roughly the same value as a freehold</h4>
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Leasehold residencies in Bournemouth with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it. <h4>Banks and Building Societies will not lend with a short lease</h4> Many mortgage companies insist on a lengthy amount of time remaining on a leasehold residence before they will contemplate providing a mortgage on it. Regardless of whether you require a mortgage, you should be conscious that it is likely that someone intending to buy your property in the future might well do, so in the event that they can't secure a mortgage, then the value of the property will likely suffer. In the last decade many mortgage lenders have increased the required minimum lease length that they are willing to grant a mortgage on <p>
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<tr><th>Lender</th>
<th> Requirement
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<td>Accord Mortgages</td>
<td> 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.
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<td>Barclays plc</td>
<td> Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below).<br /><br />Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office.<br /><br />Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval:<br /><br />• Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND<br />• The value of the property subject to the short remaining term is £500,000 or more AND<br />• The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing;
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<td>Chelsea Building Society</td>
<td> 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.
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<td>Coventry Building Society</td>
<td> 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.
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<td>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<h4> Get in touch with one of our Bournemouth lease extension solicitors or enfranchisement solicitors
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The lawyers that we work with undertake 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 conveyancing solicitor we work with provide it.
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Bournemouth Lease Extension Example Cases:
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<h5> Reuben, Bournemouth, Dorset,</h5>
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Reuben was the the leasehold owner of a studio flat in Bournemouth being sold with a lease of just over fifty eight years unexpired. Reuben informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Reuben to invoke his statutory right. Reuben procured expert advice and secured satisfactory resolution informally and readily saleable.
<h5>Bournemouth case:</h5>
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Last February we were contacted by Mr Ryan Mason , who
acquired a ground floor apartment in Bournemouth in August 2006. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Comparable flats in Bournemouth with an extended lease were valued around £280,000. The average ground rent payable was £55 billed quarterly. The lease came to a finish on 25 April 2103. Given that there were 77 years remaining we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 plus professional charges.
<h5>Bournemouth case:</h5>
<p> Dr I Stewart acquired a purpose-built apartment in Bournemouth in August 2011. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative residencies in Bournemouth with 100 year plus lease were worth £183,600. The mid-range amount of ground rent was £65 billed annually. The lease ran out in 2083. Considering the 57 years left we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus professional charges.
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