Chances are that where you own a flat in Boscombe you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancers 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.
14 months ago Nathaniel, came critically close to the 80-year threshold with the lease on his one bedroom apartment in Boscombe. Having bought his flat twenty years ago, the length of the lease was of no significance. Fortunately, he realised he needed to take steps soon on Extending the lease. Nathaniel was able to extend his lease just under the wire last July. Nathaniel and the freeholder ultimately settled on the final figure of £5,000 . If he not met the deadline, the premium would have gone up by at least £950.
Mr Sam Sharif moved into a purpose-built apartment in Boscombe in July 2002. The question was if we could estimate the premium would be for a 90 year extension to my lease. Comparable homes in Boscombe with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease expired in 2103. Given that there were 77 years left we approximated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 plus expenses.
Dr L Howard bought a first floor apartment in Boscombe in September 1998. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Comparative homes in Boscombe with 100 year plus lease were in the region of £183,600. The mid-range amount of ground rent was £65 collected every twelve months. The lease end date was in 2083. Considering the 57 years left we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including expenses.