With a domestic leasehold premises in Bolsover, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive notably once there are less than 80 years remaining. Leasehold owners in Bolsover with a lease approaching 81 years remaining should seriously think of extending it as soon as possible. Once the lease term has under eighty years remaining, under the current Act the landlord can calculate and levy a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a freeholder in Bolsover,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bolsover valuers.
Sam owned a conversion apartment in Bolsover on the market with a lease of a little over 72 years remaining. Sam on an informal basis approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Sam to invoke his statutory right. Sam obtained expert advice and secured an acceptable resolution informally and readily saleable.
In 2014 we were contacted by Mr and Mrs. T Girard who, having moved into a recently refurbished flat in Bolsover in January 2008. The dilemma was if we could estimate the price could be for a ninety year lease extension. Identical flats in Bolsover with an extended lease were worth £174,200. The average ground rent payable was £55 billed yearly. The lease terminated on 21 July 2077. Given that there were 51 years unexpired we estimated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 exclusive of legals.
In 2010 we were phoned by Mr D White who, having acquired a garden apartment in Bolsover in April 2008. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Identical homes in Bolsover with an extended lease were worth £285,000. The average amount of ground rent was £45 collected every twelve months. The lease concluded on 9 November 2097. Considering the 71 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of costs.