The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Bosham have the legal entitlement to extend the lease for an additional ninety years in accordance with legislation. Do give careful consideration before delaying your Bosham lease extension. Putting off the costs today simply increases the price you will eventually be required to pay for a lease extension.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
Retaining our service gives you enhanced control over the value of your Bosham leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last Spring Cameron, came dangerously near to the 80-year threshold with the lease on his garden apartment in Bosham. Having bought his flat 19 years previously, the lease term was of minimal importance. Fortunately, he became aware that he would imminently be paying way over the odds for Extending the lease. Cameron extended the lease just under the wire in June. Cameron and the freeholder in the end agreed on a premium of £5,500 . If he failed to meet the deadline, the figure would have become more exhorbitant by a minimum £1,100.
Last Winter we were called by Dr O Anderson , who acquired a garden flat in Bosham in March 2010. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Comparative flats in Bosham with a long lease were valued around £267,600. The average ground rent payable was £65 collected quarterly. The lease came to a finish in 2092. Given that there were 67 years unexpired we approximated the premium to the landlord for the lease extension to be within £14,300 and £16,400 plus professional charges.
In 2009 we were phoned by Mr and Mrs. F Wood who, having took over the lease of a one bedroom apartment in Bosham in November 2008. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Comparable premises in Bosham with a long lease were in the region of £206,200. The average amount of ground rent was £60 collected monthly. The lease elapsed on 18 September 2081. Considering the 56 years left we approximated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of legals.