Bolsover leases on residential deteriorating in value. Where your lease has in the region of 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease falls below this level then you begin paying an additional element called marriage value. Flat owners in Bolsover will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain situations you may not qualify. There are prescribed deadlines and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
The lawyers 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 conveyancer we work with provide it.
During the course of the last few months Jacob, started to get near to the eighty-year mark with the lease on his leasehold apartment in Bolsover. Having purchased his property 18 years ago, the unexpired term was of no relevance. Luckily, he noticed he needed to take action soon on Extending the lease. Jacob was able to extend his lease just ahead of time in April. Jacob and the freeholder ultimately agreed on sum of £5,500 . If he had missed the deadline, the amount would have escalated by at least £1,125.
In 2013 we were e-mailed by Mr and Mrs. E Turner who, having completed a basement apartment in Bolsover in October 2005. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical properties in Bolsover with a long lease were valued about £225,800. The average ground rent payable was £60 collected quarterly. The lease ended on 7 July 2084. Considering the 60 years unexpired we calculated the compensation to the landlord for the lease extension to be between £25,700 and £29,600 not including legals.
Mrs W Johnson completed a newly refurbished flat in Bolsover in April 2002. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Identical properties in Bolsover with a long lease were in the region of £210,000. The average ground rent payable was £50 invoiced annually. The lease expired in 2104. Given that there were 80 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including costs.