The market value of Bourne End leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the unexpired lease term is less than 80 years
Leasehold premises in Bourne End with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Royal Bank of Scotland |
Retaining our service gives you enhanced control over the value of your Bourne End leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last year Oscar, came precariously near to the 80-year threshold with the lease on his ground floor apartment in Bourne End. Having purchased his flat 18 years previously, the length of the lease was of little concern. Luckily, he noticed he would imminently be paying an inflated amount for a lease extension. Oscar was able to extend his lease at the eleventh hour in July. Oscar and the landlord who owned the flat above subsequently agreed on a premium of £5,500 . If the lease had gone lower than 80 years, the premium would have become more costly by at least £975.
Last Summer we were approach by Mrs Ellen Morel , who moved into a garden flat in Bourne End in May 1996. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative homes in Bourne End with an extended lease were worth £200,800. The mid-range ground rent payable was £65 billed annually. The lease expired in 2086. Considering the 60 years left we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus fees.
Last Autumn we were e-mailed by Mr Leon Petit , who completed a ground floor apartment in Bourne End in May 2001. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative homes in Bourne End with 100 year plus lease were in the region of £260,000. The average ground rent payable was £50 invoiced monthly. The lease came to a finish on 27 July 2097. Having 71 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.