Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Boncath. Inevitably, the period of lease remaining reduces over time. This may pass by relatively unnoticed when the flat or house needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible leaseholders in Boncath have the legal entitlement to extend the lease for an additional ninety years under legislation. Do give careful consideration before delaying your Boncath lease extension. Putting off the cost now only increases the price you will ultimately have to pay for a lease extension
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Boncath,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Boncath valuers.
Subsequent to unsuccessful discussions with the landlord of her studio flat in Boncath, Hannah started the lease extension process just as the lease was approaching the all-important eighty-year mark. The legal work was finalised in May 2010. The freeholder’s costs were negotiated to a tad over 650 pounds.
In 2013 we were approached by Dr N André who, having owned a one bedroom apartment in Boncath in February 1998. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by 90 years. Comparative residencies in Boncath with 100 year plus lease were valued about £257,800. The mid-range ground rent payable was £65 collected yearly. The lease came to a finish on 2 July 2091. Given that there were 65 years left we calculated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 not including legals.
In 2009 we were called by Dr L García who, having moved into a newly refurbished flat in Boncath in June 2010. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Similar flats in Boncath with a long lease were valued about £191,400. The average ground rent payable was £55 billed every twelve months. The lease came to a finish on 23 July 2080. Given that there were 54 years left we approximated the compensation to the freeholder to extend the lease to be between £34,200 and £39,600 plus professional charges.