For those whose Bourne End flat is held on a long lease, our message is clear – if nothing is done, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold premises in Bourne End with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Bourne End can be a difficult process. We recommend you get professional help from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Bourne End lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leo owned a 2 bedroom flat in Bourne End on the market with a lease of just over 59 years left. Leo on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Leo to invoke his statutory right. Leo procured expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
Last month we were phoned by Mr Gabriel Smith , who purchased a ground floor apartment in Bourne End in February 2003. The question was if we could estimate the price would likely be to extend the lease by an additional years. Identical residencies in Bourne End with an extended lease were worth £265,000. The mid-range amount of ground rent was £50 collected per annum. The lease came to a finish on 6 February 2099. Considering the 73 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
In 2013 we were approached by Mr and Mrs. W Bell who, having bought a studio apartment in Bourne End in April 2006. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable properties in Bourne End with a long lease were worth £264,000. The mid-range amount of ground rent was £60 collected per annum. The lease end date was on 28 April 2079. Having 53 years remaining we approximated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 plus legals.