The nearer a domestic lease in Bourne End nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, in excess of 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Bourne End will meet the qualifying criteria; however a conveyancing solicitor 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 owned the property for under two years.
Leasehold properties in Bourne End with more than one hundred years left 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 service charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure 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 conveyancing solicitor we work with provide it.
After protracted negotiations with the landlord of her first floor apartment in Bourne End, Rebecca initiated the lease extension process just as the lease was nearing the crucial 80-year deadline. The transaction was finalised in November 2008. The freeholder’s costs were negotiated to under 500 GBP.
In 2012 we were called by Mr and Mrs. I Leroy who, having was assigned a lease of a newly refurbished apartment in Bourne End in May 2012. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Identical homes in Bourne End with 100 year plus lease were worth £235,200. The mid-range amount of ground rent was £45 billed monthly. The lease finished on 9 August 2091. Considering the 66 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus fees.
Mr and Mrs. P Roberts acquired a one bedroom flat in Bourne End in July 2002. The question was if we could estimate the premium could be to prolong the lease by ninety years. Similar homes in Bourne End with a long lease were in the region of £280,000. The mid-range ground rent payable was £55 invoiced per annum. The lease finished on 7 August 2102. Considering the 77 years remaining we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.