Bosham leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Bosham tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Bosham you must investigate if your lease has between 70 and ninety years remaining. There are compelling reasons why a Bosham leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is effected without delay
Leasehold properties in Bosham with over 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| 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. |
Lease extensions in Bosham can be a difficult process. We recommend you get guidance from a lawyer 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 Bosham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful correspondence with the freeholder of her first floor flat in Bosham, Alicia initiated the lease extension process as the eighty year mark was swiftly advancing. The legal work was concluded in May 2011. The freeholder’s charges were negotiated to slightly above 550 GBP.
In 2011 we were e-mailed by Mr and Mrs. T Allen who, having completed a basement flat in Bosham in February 2007. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by a further 90 years. Identical homes in Bosham with a long lease were worth £189,000. The mid-range ground rent payable was £55 invoiced per annum. The lease elapsed in 2079. Considering the 53 years left we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including costs.
In 2010 we were called by Dr Luca Williams who, having bought a one bedroom apartment in Bosham in November 2000. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical flats in Bosham with a long lease were worth £290,000. The average amount of ground rent was £45 billed monthly. The lease terminated on 23 June 2099. Considering the 73 years outstanding we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 not including costs.