The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Boscombe have the legal entitlement to extend the lease for a further ninety years under statute. Please think carefully before delaying your Boscombe lease extension. Shelving the costs today simply increases the premium you will eventually be required to pay to extend the lease.
Leasehold properties in Boscombe with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Boscombe can be a difficult process. We recommend you secure guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Boscombe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Joseph, started to get near to the 80-year mark with the lease on his two bedroom apartment in Boscombe. Having bought his flat two decades ago, the length of the lease was of minimal relevance. Luckily, he realised he would imminently be paying way over the odds for Extending the lease. Joseph was able to extend his lease just under the wire last July. Joseph and the freeholder via the managing agents ultimately settled on a premium of £5,000 . If he not met the deadline, the price would have become more exhorbitant by a minimum £875.
In 2010 we were approached by Mr and Mrs. V Harris who, having took over the lease of a ground floor apartment in Boscombe in June 2011. We are asked if we could approximate the compensation to the landlord would be to extend the lease by 90 years. Comparable homes in Boscombe with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 invoiced every twelve months. The lease lapsed on 27 February 2085. Having 60 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £20,900 and £24,200 plus legals.
Last Spring we were e-mailed by Dr Blake González , who owned a ground floor apartment in Boscombe in August 2009. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparable residencies in Boscombe with a long lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced monthly. The lease lapsed on 10 April 2096. Considering the 71 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.