Bolsover leases on domestic properties are gradually losing value. Where your lease has in the region of 90 years remaining, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Bolsover will mostly qualify for a lease extension; however a solicitor will confirm if you qualify. In some cases you may not be entitled. There are prescribed timetables and formalities to follow once the process is triggered so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Bolsover with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Engaging our service will provide you increased control over the value of your Bolsover leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful negotiations with the freeholder of her one bedroom flat in Bolsover, Isabel commenced the lease extension process as the 80 year deadline was fast advancing. The lease extension completed in November 2012. The freeholder’s costs were kept to an absolute minimum.
Last Spring we were e-mailed by Mr and Mrs. T François , who moved into a garden apartment in Bolsover in April 1999. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparative premises in Bolsover with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 invoiced per annum. The lease elapsed on 6 March 2078. Taking into account 52 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £30,400 and £35,200 plus fees.
Last Christmas we were e-mailed by Mr and Mrs. D Roberts , who completed a studio apartment in Bolsover in February 1997. The question was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar residencies in Bolsover with a long lease were worth £285,000. The average amount of ground rent was £45 invoiced per annum. The lease lapsed in 2098. Taking into account 72 years outstanding we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus professional charges.