There is no doubt about it a leasehold property in Boscombe is a wasting asset as a result of the shortening lease. If the lease has, beyond 100 years remaining then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending sooner than later. The majority of flat owners in Boscombe will qualify for this right; nevertheless a conveyancer should be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold premises in Boscombe with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | 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. |
The conveyancing solicitors that we work with undertake Boscombe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Aiden owned a studio apartment in Boscombe being sold with a lease of fraction over 72 years unexpired. Aiden informally spoke with his landlord being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Aiden to invoke his statutory right. Aiden procured expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
Dr Y White owned a studio apartment in Boscombe in March 2012. The question was if we could estimate the premium would be for a ninety year lease extension. Comparative homes in Boscombe with 100 year plus lease were worth £280,000. The average amount of ground rent was £55 collected monthly. The lease ended in 2104. Considering the 78 years left we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of costs.
In 2011 we were called by Mrs A Michel who, having bought a one bedroom flat in Boscombe in May 2005. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparable properties in Boscombe with 100 year plus lease were in the region of £191,000. The mid-range amount of ground rent was £65 billed every twelve months. The lease expired on 5 September 2084. Having 58 years outstanding we estimated the premium to the landlord for the lease extension to be between £23,800 and £27,400 not including costs.