When it comes to domestic leasehold premises in Bollington, you are actually buying a right to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than 80 years remaining. Anyone in Bollington with a lease nearing 81 years remaining should seriously consider extending it sooner than later. Once the lease term has fewer than eighty years remaining, under the current legislation the landlord can calculate and charge a greater premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
The conveyancing solicitors that we work with procure Bollington 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 conveyancer we work with provide it.
After protracted correspondence with the freeholder of her first floor flat in Bollington, Hollie initiated the lease extension process as the eighty year deadline was fast advancing. The lease extension was concluded in November 2015. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. J Richardson purchased a ground floor flat in Bollington in October 2012. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Bollington with an extended lease were in the region of £275,000. The average amount of ground rent was £45 invoiced annually. The lease concluded in 2093. Considering the 69 years left we calculated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of legals.
Last October we were phoned by Mr H Hill , who acquired a one bedroom flat in Bollington in November 2005. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparable properties in Bollington with a long lease were in the region of £216,000. The average amount of ground rent was £60 invoiced yearly. The lease ran out on 11 June 2082. Taking into account 58 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including professional charges.