The only way is down when it comes to Bolsover lease terms. Bolsover flats that have a remaining term fewer than 80 years will reduce in value at a rapid rate, and the cost of extending your lease will go up.
Leasehold properties in Bolsover with more than one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with undertake 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 lawyer we work with provide it.
Arthur was the the leasehold proprietor of a conversion flat in Bolsover being sold with a lease of just over 61 years left. Arthur on an informal basis spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Arthur to exercise his statutory right. Arthur obtained expert legal guidance and secured satisfactory deal informally and sell the flat.
In 2009 we were approached by Mrs Chloe Morgan who, having bought a basement apartment in Bolsover in May 2004. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Identical premises in Bolsover with a long lease were worth £275,000. The average amount of ground rent was £45 invoiced per annum. The lease ended on 1 March 2094. Considering the 69 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
Last Summer we were called by Mrs Rachael Jackson , who completed a first floor flat in Bolsover in June 2004. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by an additional years. Similar residencies in Bolsover with a long lease were worth £216,000. The average ground rent payable was £60 invoiced yearly. The lease elapsed in 2083. Considering the 58 years outstanding we estimated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of fees.