The re-sale value of a leasehold property in Bourne is impacted by how many years the lease has remaining. If it is close to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is ideal to start the lease extension process when the lease still has 82 years unexpired so that formalities can be concluded in advance of the 80 year cut off point. Current legislation entitles Bourne qualifying lessees to acquire a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Using our service gives you better control over the value of your Bourne leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Ethan was the the leasehold proprietor of a high value flat in Bourne on the market with a lease of a little over fifty eight years remaining. Ethan on an informal basis approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Ethan to exercise his statutory right. Ethan procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2013 we were approached by Ms Elizabeth Mitchell who, having moved into a first floor flat in Bourne in June 2005. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparative flats in Bourne with 100 year plus lease were valued around £218,400. The average amount of ground rent was £60 collected every twelve months. The lease came to a finish in 2085. Taking into account 59 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £27,600 and £31,800 not including costs.
Mr and Mrs. C Nelson moved into a first floor apartment in Bourne in July 2008. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by 90 years. Similar properties in Bourne with a long lease were valued about £205,000. The mid-range ground rent payable was £50 invoiced per annum. The lease concluded on 20 March 2105. Taking into account 79 years left we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.