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 the lease becomes more expensive. It is the case that most Bosham tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Bosham you must see if your lease has between 70 and ninety years remaining. There are good reasons why a Bosham flat owner with a lease having around 80 years left should take action to make sure that a lease extension is effected without delay
Leasehold residencies in Bosham with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Bosham can be a difficult process. We recommend you procure professional help from a conveyancer 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.
Daniel owned a 2 bedroom flat in Bosham being marketed with a lease of fraction over 72 years unexpired. Daniel informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert advice and was able to make a more informed judgement and deal with the matter and sell the flat.
Dr Callum Clark moved into a first floor flat in Bosham in August 2007. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Bosham with an extended lease were valued about £230,800. The mid-range ground rent payable was £60 invoiced per annum. The lease elapsed on 2 August 2085. Having 60 years remaining we estimated the compensation to the landlord for the lease extension to be within £24,700 and £28,600 exclusive of legals.
Dr J Rodríguez moved into a newly refurbished apartment in Bosham in July 2004. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparable homes in Bosham with an extended lease were valued around £210,000. The mid-range ground rent payable was £50 collected every twelve months. The lease lapsed in 2105. Having 80 years outstanding we approximated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of costs.