Bolsover leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Bolsover will usually qualify for a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not be entitled. There are prescribed timetables and procedures to follow once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Engaging our service gives you increased control over the value of your Bolsover leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Evan, came dangerously near to the eighty-year threshold with the lease on his studio apartment in Bolsover. Having purchased his property two decades ago, the length of the lease was of no importance. Thankfully, he recognised he needed to take steps soon on Extending the lease. Evan was able to extend his lease just in the nick of time in June. Evan and the freeholder via the management company ultimately agreed on sum of £5,500 . If the lease had dipped to less than eighty years, the premium would have increased by at least £1,125.
Last Winter we were e-mailed by Mr and Mrs. O Mercier , who completed a one bedroom apartment in Bolsover in June 2003. We are asked if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparative residencies in Bolsover with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 invoiced per annum. The lease terminated on 3 June 2077. Considering the 52 years outstanding we estimated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including costs.
Dr Mollie Khan bought a ground floor flat in Bolsover in May 2012. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Bolsover with an extended lease were valued about £285,000. The average ground rent payable was £45 collected every twelve months. The lease ended on 2 January 2097. Given that there were 72 years remaining we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.