Boreham leases on domestic deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for your lease extension to be in place before the term of the current lease dips under eighty years - otherwise a higher premium will be due. Leasehold owners in Boreham will mostly qualify for a lease extension; however a solicitor should be able check if you qualify. In some situations you may not qualify. There are also strict timetables and formalities to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
Leasehold properties in Boreham with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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 75 years plus the term of the mortgage 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. |
Irrespective of whether you are a tenant or a landlord in Boreham,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Boreham valuers.
Oscar was the the leasehold proprietor of a studio flat in Boreham on the market with a lease of just over 59 years unexpired. Oscar informally contacted his landlord a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Oscar to invoke his statutory right. Oscar obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Last Christmas we were phoned by Mr and Mrs. L Gunderson , who purchased a first floor apartment in Boreham in January 2007. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative properties in Boreham with a long lease were worth £176,200. The average ground rent payable was £65 billed yearly. The lease terminated on 10 May 2082. Considering the 56 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 exclusive of fees.
Last Christmas we were approach by Mr Finn Moore , who moved into a one bedroom flat in Boreham in May 2010. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Identical properties in Boreham with 100 year plus lease were valued about £242,600. The average ground rent payable was £45 collected per annum. The lease terminated on 24 July 2093. Given that there were 67 years remaining we calculated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of costs.