Why you should start your Boscombe lease extension

Top reasons for lease extension now:

Increase your lease and increase your Boscombe property value

When it comes to domestic leasehold premises in Boscombe, you are actually purchasing a right to live in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years left. Leasehold owners in Boscombe with a lease approaching 81 years left should seriously think of extending it sooner rather than later. Once the lease term has under eighty years left, under the current Act the landlord is entitled to calculate and demand a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is due.

Boscombe property with a lease extension is almost the same value as a freehold

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 ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.

Banks and Building Societies may not lend on a short lease

Lending institutions have set criteria when loaning monies charged on leasehold property. Many will simply refrain from lending at all once the remaining lease term goes beneath a certain unexpired lease term. Many Lending institutions will not consider property with a remaining below seventy years suitable security. In addition to this being important when selling, it is also relevant where you are wanting to remortgage your Boscombe property.

What makes us experts in Boscombe lease extensions?

Irrespective of whether you are a tenant or a freeholder in Boscombe,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 experience and the close ties they enjoy with Boscombe valuers.

Boscombe Lease Extension Case Studies:

Hannah, Boscombe, Dorset,

Trailing protracted discussions with the landlord of her two bedroom flat in Boscombe, Hannah started the lease extension process just as the lease was nearing the critical 80-year threshold. The transaction was concluded in January 2009. The freeholder’s charges were kept to an absolute minimum.

Boscombe case:

Mr Charlie Brown bought a one bedroom flat in Boscombe in September 1998. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Comparable flats in Boscombe with 100 year plus lease were valued about £250,000. The mid-range amount of ground rent was £50 billed yearly. The lease lapsed on 6 March 2095. Considering the 69 years outstanding we approximated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus legals.

Boscombe case:

Last March we were called by Mr Max Kelly , who was assigned a lease of a first floor flat in Boscombe in July 2005. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical residencies in Boscombe with an extended lease were valued about £290,000. The mid-range amount of ground rent was £60 invoiced quarterly. The lease finished on 16 October 2106. Taking into account 80 years unexpired we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including legals.