The value of Bourne leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the remaining term is below than eighty years
It is generally considered that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you enhanced control over the value of your Bourne leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Winter Aarav, came critically near to the eighty-year threshold with the lease on his two bedroom apartment in Bourne. Having bought his property two decades ago, the unexpired term was of minimal relevance. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Aarav arranged for a lease extension just ahead of time in August. Aarav and the freeholder in the end agreed on a premium of £5,500 . If he failed to meet the deadline, the amount would have increased by at least £1,075.
Ms G Simon completed a basement apartment in Bourne in February 1995. The dilemma was if we could approximate the price would be to prolong the lease by a further 90 years. Comparative premises in Bourne with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ended in 2097. Having 71 years remaining we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of professional charges.
In 2009 we were approached by Mrs Alice Norbert who, having owned a one bedroom apartment in Bourne in March 2006. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Similar residencies in Bourne with a long lease were worth £225,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease expired in 2086. Having 60 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 not including professional charges.