Boreham residential property held on a long lease is a wasting asset as the leaseholder merely owns the property for a period of years.
Leasehold residencies in Boreham with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Coventry Building Society | 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. |
| 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. |
Lease extensions in Boreham can be a difficult process. We recommend you procure guidance 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 in-depth market knowledge dealing with Boreham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Rory owned a 2 bedroom flat in Boreham on the market with a lease of fraction over fifty eight years outstanding. Rory informally approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Rory to exercise his statutory right. Rory obtained expert advice and secured satisfactory deal informally and sell the flat.
Dr Alex Turner purchased a recently refurbished flat in Boreham in November 1997. The question was if we could approximate the price would be to prolong the lease by an additional years. Comparative flats in Boreham with an extended lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease came to a finish on 20 April 2102. Given that there were 77 years remaining we estimated the compensation to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of costs.
In 2009 we were called by Ms Zoe Leroy who, having owned a recently refurbished flat in Boreham in September 2008. We are asked if we could estimate the premium could be to extend the lease by an additional years. Similar properties in Boreham with 100 year plus lease were valued about £183,600. The average ground rent payable was £65 billed monthly. The lease came to a finish in 2082. Having 57 years outstanding we calculated the compensation to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of costs.