Boncath leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Boncath enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Boncath you should investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Boncath 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 conveyancer we work with provide it.
Last October William, started to get close to the eighty-year mark with the lease on his garden flat in Boncath. Having bought his property twenty years previously, the unexpired term was of minimal importance. Luckily, he realised he would imminently be paying an inflated amount for Extending the lease. William arranged for a lease extension just under the wire last June. William and the landlord who owned the flat above eventually agreed on an amount of £5,500 . If the lease had gone below 80 years, the premium would have increased by at least £1,025.
In 2009 we were called by Mr and Mrs. V Díaz who, having purchased a ground floor apartment in Boncath in January 2005. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Comparative homes in Boncath with a long lease were in the region of £300,000. The average ground rent payable was £50 invoiced annually. The lease ran out in 2101. Considering the 75 years left we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including fees.
Mrs Nicole Clarke was assigned a lease of a garden apartment in Boncath in January 1998. The dilemma was if we could estimate the premium would likely be to prolong the lease by an additional years. Comparative premises in Boncath with a long lease were worth £250,400. The average ground rent payable was £65 billed per annum. The lease terminated in 2090. Considering the 64 years remaining we estimated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of costs.