Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Bollington. Inevitably, the length of lease remaining reduces over time. This may pass by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Qualifying long lease owners in Bollington have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. You should give due consideration before putting off your Bollington lease extension. Holding off the cost now simply increases the price you will eventually incur for a lease extension
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Lease extensions in Bollington can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 in-depth market knowledge procuring Bollington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of unsuccessful negotiations with the freeholder of her basement apartment in Bollington, Rosie started the lease extension process as the 80 year mark was swiftly approaching. The legal work was concluded in May 2014. The landlord’s fees were kept to an absolute minimum.
In 2010 we were contacted by Dr Zoe James who, having owned a studio apartment in Bollington in February 2010. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar homes in Bollington with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease ended in 2095. Taking into account 70 years remaining we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including professional charges.
Mr and Mrs. L Martin moved into a studio flat in Bollington in March 1997. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative premises in Bollington with 100 year plus lease were in the region of £223,400. The average ground rent payable was £60 invoiced every twelve months. The lease lapsed on 19 November 2084. Given that there were 59 years left we calculated the premium to the landlord to extend the lease to be within £27,600 and £31,800 not including costs.