Unfortunately that a Bourne End residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Bourne End property market.Where your lease has approximately 90 years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher premium will be due. The majority of flat owners in Bourne End will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Bourne End with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Engaging our service will provide you enhanced control over the value of your Bourne End leasehold, as your property will be more valuable and saleable in respect of lease length should you want 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.
Subsequent to unsuccessful correspondence with the freeholder of her ground floor flat in Bourne End, Samantha commenced the lease extension process as the 80 year mark was rapidly advancing. The legal work completed in April 2008. The landlord’s charges were negotiated to under 650 GBP.
Last Autumn we were contacted by Ms Louise Cooper , who purchased a one bedroom flat in Bourne End in April 1995. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar flats in Bourne End with an extended lease were valued around £198,400. The average amount of ground rent was £65 collected every twelve months. The lease elapsed on 4 March 2084. Having 59 years unexpired we calculated the premium to the landlord for the lease extension to be between £21,900 and £25,200 plus fees.
Last Autumn we were e-mailed by Mr and Mrs. D Pérez , who acquired a studio apartment in Bourne End in August 1998. The dilemma was if we could estimate the price would likely be for a 90 year extension to my lease. Similar residencies in Bourne End with an extended lease were in the region of £255,000. The average amount of ground rent was £50 collected per annum. The lease termination date was on 3 May 2095. Considering the 70 years left we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.