With a residential leasehold premises in Boscombe, you are actually buying a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than eighty years left. Leasehold owners in Boscombe with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has below 80 years left, under the relevant Act the freeholder can calculate and charge a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Birmingham Midshires | 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
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Retaining our service gives you increased control over the value of your Boscombe leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy negotiations with the landlord of her garden apartment in Boscombe, Naomi commenced the lease extension process just as her lease was nearing the critical 80-year deadline. The lease extension was concluded in October 2009. The freeholder’s costs were negotiated to under 450 GBP.
In 2010 we were approached by Mr and Mrs. T Stewart who, having purchased a ground floor apartment in Boscombe in January 2009. The dilemma was if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Similar flats in Boscombe with 100 year plus lease were worth £290,000. The average ground rent payable was £60 collected every twelve months. The lease terminated in 2106. Having 80 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
Dr W Moore took over the lease of a garden flat in Boscombe in May 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Identical homes in Boscombe with 100 year plus lease were worth £200,800. The average amount of ground rent was £65 invoiced every twelve months. The lease came to a finish on 5 September 2086. Taking into account 60 years outstanding we approximated the premium to the freeholder for the lease extension to be between £20,900 and £24,200 exclusive of professional charges.