Boscombe leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. Most owners of residential leasehold property in Boscombe enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Boscombe you really ought to check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Boscombe flat owner with a lease having around eighty years unexpired should take action to ensure that a lease extension is effected without delay
Leasehold residencies in Boscombe with more than 100 years outstanding on the lease are often regarded as a ‘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 buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Coventry Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Regardless of whether you are a tenant or a freeholder in Boscombe,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Boscombe valuers.
Last year Gabriel, came critically close to the 80-year threshold with the lease on his two bedroom apartment in Boscombe. In buying his home two decades ago, the length of the lease was of minimal bearing. As luck would have it, he noticed he needed to take action soon on a lease extension. Gabriel extended the lease just under the wire last September. Gabriel and the freeholder ultimately agreed on a premium of £5,500 . If the lease had dipped lower than eighty years, the price would have become more exhorbitant by at least £950.
In 2010 we were phoned by Dr Alfie Watson who, having purchased a basement flat in Boscombe in March 2004. The dilemma was if we could estimate the premium would be for a 90 year extension to my lease. Comparable homes in Boscombe with an extended lease were worth £235,200. The average ground rent payable was £45 invoiced annually. The lease end date was on 24 July 2092. Taking into account 66 years remaining we calculated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.
In 2010 we were contacted by Dr W Bell who, having was assigned a lease of a one bedroom flat in Boscombe in May 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical properties in Boscombe with a long lease were in the region of £280,000. The mid-range amount of ground rent was £55 collected annually. The lease finished in 2103. Given that there were 77 years unexpired we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including costs.