It’s an underpublicised truth that a Boncath residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Boncath property market.Where your lease has approximately ninety years left, you should start considering a lease extension. If lease term drops under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Boncath will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Leeds Building Society | |
| Santander | |
| TSB | |
| Royal Bank of Scotland |
Lease extensions in Boncath can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in this area.
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 a wealth of experience procuring Boncath lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing unsuccessful negotiations with the freeholder of her first floor apartment in Boncath, Isobel started the lease extension process as the 80 year deadline was rapidly nearing. The lease extension completed in January 2009. The freeholder’s charges were kept to an absolute minimum.
Last year we were approach by Ms Jade Lewis , who purchased a garden apartment in Boncath in April 2001. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Identical properties in Boncath with an extended lease were worth £174,200. The average ground rent payable was £55 billed monthly. The lease expiry date was in 2077. Given that there were 51 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including professional charges.
In 2013 we were phoned by Mr and Mrs. N Phillips who, having owned a ground floor apartment in Boncath in March 2002. The question was if we could estimate the price could be for a ninety year lease extension. Similar properties in Boncath with 100 year plus lease were valued about £285,000. The average ground rent payable was £45 collected quarterly. The lease lapsed in 2097. Having 71 years left we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including legals.