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 increase materialy once the remaining term is less than eighty years
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date 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 procure 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 a wealth of experience procuring 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.
Ben owned a studio flat in Bourne End on the market with a lease of a little over 61 years left. Ben on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ben to invoke his statutory right. Ben procured expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the property.
In 2010 we were contacted by Mr Gabriel Campbell who, having moved into a basement flat in Bourne End in July 1998. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Identical properties in Bourne End with an extended lease were valued around £270,000. The average amount of ground rent was £55 invoiced monthly. The lease ended on 17 January 2099. Having 74 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.
Last May we were contacted by Mr and Mrs. B Turner , who bought a garden flat in Bourne End in July 2012. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year extension to my lease. Comparative properties in Bourne End with 100 year plus lease were valued around £166,400. The average ground rent payable was £60 invoiced yearly. The lease terminated in 2079. Considering the 54 years unexpired we estimated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 not including fees.