As the length of the unexpired term of a Bourne End domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, more than one hundred years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should consider extending without delay. The majority of flat owners in Bourne End will qualify for this right; however a lawyer can confirm if you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Bourne End with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges merit 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Yorkshire 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. |
The conveyancers that we work with handle Bourne End 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 Elijah, started to get close to the 80-year mark with the lease on his garden flat in Bourne End. Having bought his home 19 years ago, the lease term was of little relevance. by good luck, it dawned on him that he would imminently be paying an inflated amount for a lease extension. Elijah extended the lease just ahead of time last May. Elijah and the landlord who owned the flat above ultimately agreed on the final figure of £6,000 . If he not met the deadline, the price would have escalated by at least £1,125.
Last month we were e-mailed by Mr Eliot Fournier , who completed a recently refurbished apartment in Bourne End in November 2008. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparable premises in Bourne End with 100 year plus lease were worth £208,200. The mid-range amount of ground rent was £65 billed monthly. The lease elapsed in 2087. Considering the 61 years unexpired we calculated the premium to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of legals.
Mr E Phillips purchased a one bedroom apartment in Bourne End in April 2008. We are asked if we could approximate the premium would be for a 90 year lease extension. Identical flats in Bourne End with 100 year plus lease were valued about £260,000. The mid-range amount of ground rent was £50 billed quarterly. The lease ended in 2098. Given that there were 72 years remaining we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including professional charges.