With a residential leasehold property in Bolsover, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive notably once there are fewer than eighty years left. Residents in Bolsover with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has less than eighty years outstanding, under the current statute the landlord can calculate and demand a larger premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Bolsover leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted discussions with the landlord of her basement flat in Bolsover, Naomi started the lease extension process just as her lease was approaching the critical eighty-year mark. The transaction was concluded in November 2007. The freeholder’s charges were restricted to below six hundred GBP.
Last Summer we were called by Mr V Brooks , who moved into a one bedroom flat in Bolsover in October 2001. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Identical premises in Bolsover with an extended lease were worth £233,200. The average ground rent payable was £60 billed every twelve months. The lease ended on 27 March 2086. Having 61 years remaining we estimated the premium to the landlord to extend the lease to be between £22,800 and £26,400 plus fees.
Last Winter we were e-mailed by Dr I Rogers , who bought a purpose-built flat in Bolsover in June 2011. We are asked if we could estimate the premium would be to extend the lease by a further 90 years. Similar properties in Bolsover with a long lease were in the region of £166,800. The average ground rent payable was £50 invoiced quarterly. The lease concluded on 22 April 2075. Taking into account 50 years outstanding we calculated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 plus fees.