When it comes to residential leasehold premises in Boscombe, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider 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 becomes disproportionately more expensive notably when there are less than eighty years remaining. Anyone in Boscombe with a lease approaching 81 years unexpired should seriously consider extending it without delay. When the lease term has less than 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a larger premium, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold properties in Boscombe with more than 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 property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Leeds Building Society | |
| Santander | |
| Virgin |
Irrespective of whether you are a tenant or a freeholder in Boscombe,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Boscombe valuers.
Half a year ago Lucas, started to get close to the eighty-year threshold with the lease on his two bedroom apartment in Boscombe. In buying his home 19 years ago, the lease term was of minimal interest. Thankfully, he became aware that he would imminently be paying an inflated amount for Extending the lease. Lucas was able to extend his lease just under the wire last September. Lucas and the landlord who owned the flat above eventually agreed on a premium of £5,500 . If the lease had gone below 80 years, the amount would have gone up by at least £1,000.
Last month we were e-mailed by Mr Finn Girard , who completed a studio apartment in Boscombe in March 1997. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable residencies in Boscombe with an extended lease were worth £208,200. The average amount of ground rent was £65 billed monthly. The lease terminated on 23 July 2087. Given that there were 61 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus costs.
Last year we were contacted by Dr F Petit , who bought a first floor flat in Boscombe in August 1995. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative properties in Boscombe with a long lease were worth £260,000. The average ground rent payable was £50 collected yearly. The lease ran out in 2098. Considering the 72 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.