The closer a residential lease in Bournemouth gets to zero years unexpired, the more it reduces the value of the property. If the lease has, over one hundred years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has under than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner than later. Many flat owners in Bournemouth will meet the qualifying criteria; nevertheless a lawyer will be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Bournemouth,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bournemouth valuers.
Leon was the the leasehold proprietor of a 2 bedroom apartment in Bournemouth on the market with a lease of a few days over 72 years remaining. Leon informally contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Leon to exercise his statutory right. Leon obtained expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Last Autumn we were contacted by Dr V Moreau , who completed a ground floor flat in Bournemouth in April 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative residencies in Bournemouth with a long lease were in the region of £215,600. The average ground rent payable was £45 invoiced yearly. The lease came to a finish on 1 October 2087. Taking into account 62 years remaining we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of fees.
Mr and Mrs. G Nguyen completed a one bedroom flat in Bournemouth in August 1996. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Identical properties in Bournemouth with a long lease were worth £265,000. The average ground rent payable was £50 billed every twelve months. The lease finished on 12 March 2098. Taking into account 73 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.