The re-sale value of a leasehold property in Bolsover depends on how many years the lease has remaining. If it is near to or less than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. Ideally one should start the process of extending the lease is when a lease still has 82 years unexpired so that formalities can be finalised prior to the 80 year mark. Leasehold Reform legislation enables Bolsover qualifying lessees to an additional term of 90 years in addition to the remaining term, at a nominal rent (zero ground rent). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Bolsover with over 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Lease extensions in Bolsover can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Bolsover lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Daniel owned a 2 bedroom apartment in Bolsover being marketed with a lease of a few days over 61 years remaining. Daniel on an informal basis contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Daniel to invoke his statutory right. Daniel obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Last Winter we were approach by Dr R Girard , who took over the lease of a basement apartment in Bolsover in July 2006. The question was if we could approximate the price would be to extend the lease by a further 90 years. Identical flats in Bolsover with an extended lease were in the region of £210,000. The mid-range ground rent payable was £50 collected yearly. The lease lapsed on 15 November 2105. Given that there were 80 years remaining we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus costs.
In 2013 we were e-mailed by Mr and Mrs. L Jones who, having moved into a newly refurbished flat in Bolsover in June 1995. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Identical flats in Bolsover with a long lease were in the region of £275,000. The average ground rent payable was £45 billed every twelve months. The lease termination date was in 2094. Having 69 years left we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.