For those whose Bourne flat is held on a long lease, our message is clear – if no remedial action is taken, your property will ultimately revert to your landlord, leaving you empty-handed. The shorter the lease the less it is worth and the more it will cost to extend the lease.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Bourne lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
In the wake of eight months of unsuccessful discussions with the freeholder of her basement apartment in Bourne, Amber started the lease extension process just as the lease was coming close to the crucial 80-year mark. The transaction was finalised in May 2014. The freeholder’s fees were restricted to below 550 pounds.
Mr O Lambert purchased a garden flat in Bourne in September 2000. We are asked if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Bourne with an extended lease were valued around £208,600. The mid-range amount of ground rent was £60 collected quarterly. The lease ended in 2082. Taking into account 57 years outstanding we approximated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 not including costs.
Last March we were contacted by Mr and Mrs. F Wilson , who was assigned a lease of a purpose-built flat in Bourne in October 1995. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative flats in Bourne with an extended lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed quarterly. The lease elapsed on 22 November 2102. Having 77 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus costs.