Bollington leases on residential properties are gradually losing value. Where your lease has about 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Bollington will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In some situations you may not be entitled. There are also strict deadlines and steps to follow once the process has started so it’s wise to be guided by a lawyer during the process.
Leasehold residencies in Bollington with over 100 years unexpired 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 upside in buying the reversionary interest unless savings on ground rent and service 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. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Bollington,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bollington valuers.
Dylan owned a 2 bedroom flat in Bollington being sold with a lease of a few days over 59 years unexpired. Dylan informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Dylan to invoke his statutory right. Dylan obtained expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Last Winter we were e-mailed by Dr Ollie André , who moved into a one bedroom flat in Bollington in November 2005. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year extension to my lease. Comparable residencies in Bollington with a long lease were in the region of £257,800. The average ground rent payable was £65 invoiced every twelve months. The lease ended on 9 October 2091. Having 65 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of legals.
Ms V Parker owned a recently refurbished apartment in Bollington in February 2006. The question was if we could approximate the price would be for a 90 year lease extension. Similar residencies in Bollington with 100 year plus lease were worth £191,400. The mid-range amount of ground rent was £55 collected per annum. The lease ended in 2080. Given that there were 54 years left we approximated the premium to the freeholder to extend the lease to be between £34,200 and £39,600 exclusive of costs.