For anyone whose Boscastle property is held on a long lease, our message is clear – if nothing is done, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension.
Leasehold premises in Boscastle with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Boscastle can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in lease extensions.
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 dealing with Boscastle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted discussions with the freeholder of her purpose-built apartment in Boscastle, Francesca commenced the lease extension process as the eighty year mark was quickly coming. The transaction was finalised in November 2005. The landlord’s costs were restricted to approximately 600 pounds.
Mr and Mrs. H Lefebvre acquired a newly refurbished flat in Boscastle in April 2009. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Similar residencies in Boscastle with a long lease were valued about £290,000. The average ground rent payable was £45 billed quarterly. The lease ran out on 2 June 2098. Considering the 72 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £11,400 and £13,200 plus fees.
In 2012 we were phoned by Mr Mason Bell who, having moved into a basement apartment in Boscastle in July 1996. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Comparative homes in Boscastle with 100 year plus lease were valued about £233,200. The mid-range ground rent payable was £60 collected quarterly. The lease expired on 11 April 2087. Taking into account 61 years as a residual term we calculated the premium to the landlord for the lease extension to be between £22,800 and £26,400 not including fees.