Boscombe leases on residential properties are gradually losing value. Where your lease has approximately 90 years left, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the existing lease falls below eighty years - otherwise a higher premium will be due. Flat owners in Boscombe will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not be entitled. There are also strict deadlines and formalities to comply with once the process has commenced so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Boscombe with over 100 years remaining 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 situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire Building Society | 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. |
The lawyers 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 conveyancer we work with provide it.
Sebastian was the the leasehold owner of a high value apartment in Boscombe being marketed with a lease of fraction over sixty years unexpired. Sebastian on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Sebastian to invoke his statutory right. Sebastian procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
In 2010 we were contacted by Mr and Mrs. L Hernández who, having owned a garden flat in Boscombe in March 1996. We are asked if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Comparative flats in Boscombe with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 collected annually. The lease elapsed on 14 February 2096. Taking into account 70 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
In 2012 we were approached by Mr and Mrs. W Pérez who, having took over the lease of a first floor flat in Boscombe in July 2012. The question was if we could estimate the premium would be for a ninety year extension to my lease. Similar homes in Boscombe with a long lease were valued about £246,800. The average amount of ground rent was £60 invoiced yearly. The lease finished in 2076. Given that there were 50 years outstanding we approximated the premium to the freeholder for the lease extension to be within £44,700 and £51,600 plus legals.