Boreham leases on residential properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the current lease falls under eighty years - otherwise a higher premium will be due. Flat owners in Boreham will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In certain circumstances you may not qualify. There are also strict timetables and steps to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Retaining our service gives you better control over the value of your Boreham leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Michael, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Boreham. In buying his flat 18 years ago, the length of the lease was of little concern. Thankfully, he noticed he would imminently be paying an escalated premium for a lease extension. Michael arranged for a lease extension at the eleventh hour last January. Michael and the landlord who owned the flat above in the end agreed on a premium of £6,000 . If the lease had slid below eighty years, the sum would have escalated by at least £1,075.
Dr H Vincent owned a one bedroom apartment in Boreham in January 2000. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by ninety years. Comparative properties in Boreham with an extended lease were worth £270,000. The average ground rent payable was £55 billed annually. The lease came to a finish in 2101. Taking into account 75 years left we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus costs.
In 2013 we were phoned by Mr and Mrs. U Parker who, having purchased a one bedroom flat in Boreham in July 1995. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable properties in Boreham with an extended lease were in the region of £173,800. The mid-range amount of ground rent was £65 collected every twelve months. The lease termination date was on 12 November 2081. Having 55 years remaining we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus costs.