As the the remaining lease term of a Bournemouth residential lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of one hundred years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending sooner as opposed to later. Many flat owners in Bournemouth will meet the qualifying criteria; however a conveyancer will be able to confirm whether you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Bournemouth with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
The conveyancers that we work with procure Bournemouth 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 2014 Leo, came very near to the eighty-year mark with the lease on his one bedroom flat in Bournemouth. Having purchased his flat 19 years ago, the length of the lease was of minimal bearing. Thankfully, he became aware that he would imminently be paying way over the odds for Extending the lease. Leo arranged for a lease extension at the eleventh hour in March. Leo and the landlord who owned the flat above in the end agreed on an amount of £6,000 . If the lease had gone below eighty years, the sum would have become more exhorbitant by at least £1,000.
Ms Isabelle Rodríguez completed a studio apartment in Bournemouth in March 1999. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparative flats in Bournemouth with 100 year plus lease were worth £173,800. The average ground rent payable was £65 invoiced quarterly. The lease end date was on 24 April 2080. Taking into account 55 years left we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.
Last Summer we were called by Mr and Mrs. H Evans , who completed a one bedroom flat in Bournemouth in April 2010. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year lease extension. Comparative residencies in Bournemouth with 100 year plus lease were in the region of £235,200. The mid-range ground rent payable was £45 billed yearly. The lease terminated on 13 June 2091. Given that there were 66 years outstanding we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of professional charges.