There is no doubt about it a leasehold flat or house in Bournemouth is a wasting asset as a result of the shortening lease. Where the residual term has, beyond 100 years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Bournemouth will qualify for this right; nevertheless a conveyancer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Bournemouth can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor 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 dealing with 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 protracted negotiations with the freeholder of her one bedroom apartment in Bournemouth, Abbie started the lease extension process as the 80 year mark was rapidly approaching. The legal work was concluded in July 2006. The landlord’s costs were restricted to about 450 GBP.
Dr O Robinson bought a garden flat in Bournemouth in April 1995. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative premises in Bournemouth with a long lease were valued about £260,000. The average amount of ground rent was £50 billed yearly. The lease ended on 22 February 2097. Taking into account 71 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
In 2013 we were contacted by Mr Jacob James who, having owned a one bedroom flat in Bournemouth in July 2010. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by ninety years. Similar properties in Bournemouth with a long lease were valued around £254,200. The mid-range ground rent payable was £60 billed annually. The lease came to a finish in 2077. Considering the 51 years remaining we approximated the compensation to the freeholder for the lease extension to be between £43,700 and £50,600 plus fees.