Boscombe leases on residential deteriorating in value. if your lease has approximately 90 years unexpired, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin incurring an additional element called marriage value. Leasehold owners in Boscombe will mostly be legally entitled to a lease extension; however a solicitor will check your eligibility. In some situations you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
Leasehold properties in Boscombe with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Boscombe can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Boscombe lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy correspondence with the freeholder of her leasehold apartment in Boscombe, Rebecca initiated the lease extension process as the eighty year threshold was swiftly nearing. The transaction was concluded in January 2006. The landlord’s charges were kept to an absolute minimum.
Last Autumn we were called by Mr Omar Roux , who was assigned a lease of a basement apartment in Boscombe in November 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Comparable flats in Boscombe with a long lease were worth £270,000. The average amount of ground rent was £55 invoiced quarterly. The lease finished on 18 June 2100. Given that there were 75 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.
In 2009 we were approached by Mr and Mrs. S Smith who, having acquired a ground floor apartment in Boscombe in January 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Similar homes in Boscombe with an extended lease were valued around £173,800. The mid-range amount of ground rent was £65 billed monthly. The lease terminated on 6 April 2080. Considering the 55 years outstanding we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including expenses.