Bourne leases on residential deteriorating in value. if your lease has approximately ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Flat owners in Bourne will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some situations you may not be entitled. There are prescribed timetables and procedures to comply with once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 conveyancers that we work with undertake 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.
Half a year ago Max, came dangerously near to the 80-year threshold with the lease on his purpose- built flat in Bourne. In buying his property 18 years previously, the lease term was of little significance. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Max extended the lease just ahead of time last May. Max and the landlord subsequently settled on an amount of £5,000 . If the lease had dropped to less than 80 years, the sum would have increased by at least £1,025.
Last month we were approach by Dr Benjamin Lewis , who purchased a basement apartment in Bourne in June 2009. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Comparable premises in Bourne with a long lease were valued about £260,200. The mid-range ground rent payable was £65 invoiced per annum. The lease expired in 2092. Considering the 66 years remaining we estimated the premium to the freeholder for the lease extension to be between £16,200 and £18,600 exclusive of costs.
In 2010 we were contacted by Mr and Mrs. D Girard who, having moved into a one bedroom apartment in Bourne in September 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Similar flats in Bourne with an extended lease were worth £198,800. The average amount of ground rent was £55 invoiced annually. The lease expired on 28 August 2081. Taking into account 55 years unexpired we calculated the premium to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of professional charges.