When it comes to domestic leasehold property in Bollington, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than 80 years remaining. Leasehold owners in Bollington with a lease approaching 81 years left should seriously think of extending it as soon as possible. Once a lease has fewer than 80 years outstanding, under the current statute the landlord is entitled to calculate and charge a greater premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| Coventry Building Society | 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Bollington,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bollington valuers.
Lewis owned a studio apartment in Bollington being sold with a lease of a few days over 72 years outstanding. Lewis informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £100 yearly. No ground rent would be due on a lease extension were Lewis to exercise his statutory right. Lewis obtained expert legal guidance and secured an acceptable resolution informally and sell the property.
In 2012 we were contacted by Mr Edward García who, having bought a one bedroom apartment in Bollington in October 2012. We are asked if we could estimate the price could be for a ninety year extension to my lease. Identical properties in Bollington with a long lease were valued about £206,200. The mid-range ground rent payable was £60 invoiced quarterly. The lease ended in 2082. Considering the 56 years as a residual term we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 plus fees.
Last Christmas we were e-mailed by Mr Michael Ramírez , who moved into a studio flat in Bollington in May 2007. We are asked if we could approximate the premium would be to extend the lease by ninety years. Similar flats in Bollington with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected annually. The lease concluded on 17 February 2102. Taking into account 76 years left we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.