With a residential leasehold property in Bournemouth, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years left. Leasehold owners in Bournemouth with a lease approaching 81 years left should seriously consider extending it as soon as possible. Once a lease has fewer than eighty years left, under the current legislation the freeholder is entitled to calculate and demand a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder 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.
Subsequent to lengthy negotiations with the freeholder of her ground floor flat in Bournemouth, Isabel commenced the lease extension process just as her lease was coming close to the critical eighty-year mark. The transaction was finalised in March 2006. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were contacted by Mr Eli Mercier who, having owned a one bedroom apartment in Bournemouth in June 2011. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical properties in Bournemouth with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced monthly. The lease ended in 2098. Taking into account 72 years outstanding we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
Mr and Mrs. Y Flores moved into a one bedroom flat in Bournemouth in May 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar residencies in Bournemouth with 100 year plus lease were worth £261,600. The average ground rent payable was £60 collected annually. The lease concluded in 2078. Having 52 years left we calculated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 plus expenses.