Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Bollington. Clearly, the term of lease left shortens over time. This may pass by relatively unnoticed when the property has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying long lease owners in Bollington have the legal entitlement to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. You should give due consideration before putting off your Bollington lease extension. Holding off the cost now only increases the price you will ultimately incur for a lease extension
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service will provide you increased control over the value of your Bollington leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas George, came critically near to the eighty-year mark with the lease on his first floor apartment in Bollington. Having purchased his property two decades ago, the lease term was of minimal importance. Thankfully, he became aware that he needed to take action soon on Extending the lease. George extended the lease at the eleventh hour in April. George and the landlord in the end settled on a premium of £5,500 . If he had missed the deadline, the price would have gone up by a minimum £1,150.
In 2009 we were approached by Dr F André who, having purchased a garden apartment in Bollington in January 1995. The dilemma was if we could estimate the price would likely be for a 90 year lease extension. Identical properties in Bollington with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease elapsed in 2103. Given that there were 78 years outstanding we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.
Last Autumn we were phoned by Mr N Harris , who took over the lease of a first floor apartment in Bollington in June 2007. We are asked if we could shed any light on how much (approximately) premium could be to extend the lease by an additional years. Identical properties in Bollington with an extended lease were in the region of £267,600. The average ground rent payable was £65 billed per annum. The lease expiry date was in 2092. Considering the 67 years left we calculated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 exclusive of fees.