Unfortunately that a Boscombe residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Boscombe property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term falls below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Boscombe will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Boscombe with over one hundred 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| 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 |
| 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. |
Engaging our service gives you better control over the value of your Boscombe leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted correspondence with the landlord of her first floor apartment in Boscombe, Sian commenced the lease extension process as the eighty year deadline was fast advancing. The legal work was concluded in April 2008. The freeholder’s fees were kept to an absolute minimum.
Mr Connor Girard took over the lease of a one bedroom apartment in Boscombe in November 1997. The dilemma was if we could approximate the premium would be for a ninety year lease extension. Identical properties in Boscombe with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease expired on 21 June 2102. Taking into account 76 years unexpired we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
In 2014 we were approached by Dr H Evans who, having purchased a studio apartment in Boscombe in October 2010. The dilemma was if we could estimate the premium would likely be to extend the lease by 90 years. Similar homes in Boscombe with 100 year plus lease were valued around £176,200. The average ground rent payable was £65 collected quarterly. The lease terminated in 2082. Having 56 years unexpired we estimated the premium to the freeholder for the lease extension to be between £29,500 and £34,000 not including legals.