With a domestic leasehold property in Bolsover, you effectively rent it for a certain amount 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 notably once there are fewer than 80 years left. Residents in Bolsover with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has below eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and levy a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
The conveyancing solicitors that we work with handle Bolsover 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 conveyancing solicitor we work with provide it.
Last year Hunter, started to get near to the eighty-year threshold with the lease on his leasehold apartment in Bolsover. In buying his home two decades ago, the lease term was of minimal significance. Fortunately, he became aware that he would imminently be paying an inflated amount for Extending the lease. Hunter was able to extend his lease just under the wire in April. Hunter and the landlord ultimately settled on sum of £6,000 . If he not met the deadline, the amount would have become more costly by at least £875.
In 2011 we were called by Mr C Garcia who, having purchased a first floor apartment in Bolsover in November 1997. The dilemma was if we could estimate the price could be to extend the lease by 90 years. Comparable homes in Bolsover with a long lease were valued about £260,200. The average ground rent payable was £65 invoiced per annum. The lease finished on 9 July 2092. Taking into account 66 years remaining we estimated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 exclusive of professional charges.
In 2010 we were phoned by Mr and Mrs. S Rose who, having purchased a ground floor flat in Bolsover in March 2005. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparable homes in Bolsover with 100 year plus lease were valued about £198,800. The average amount of ground rent was £55 billed annually. The lease came to a finish on 17 July 2081. Having 55 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of costs.