Boscombe leases on residential deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Boscombe will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some situations you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Boscombe with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a landlord 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.
Off the back of protracted correspondence with the landlord of her garden flat in Boscombe, Holly started the lease extension process as the eighty year deadline was quickly nearing. The transaction completed in January 2014. The landlord’s fees were negotiated to a tad over 650 pounds.
In 2010 we were called by Dr P Girard who, having owned a purpose-built apartment in Boscombe in January 2001. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Similar properties in Boscombe with an extended lease were in the region of £270,000. The mid-range ground rent payable was £55 billed monthly. The lease terminated in 2100. Taking into account 75 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including expenses.
Mr and Mrs. R Smith acquired a one bedroom flat in Boscombe in January 2006. The dilemma was if we could estimate the premium could be to extend the lease by an additional years. Similar properties in Boscombe with 100 year plus lease were valued about £173,800. The average amount of ground rent was £65 billed every twelve months. The lease termination date was on 26 March 2080. Taking into account 55 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 plus expenses.