Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Bolsover. Inevitably, the period of lease left reduces over time. This may slip by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension. Eligible long lease owners in Bolsover have the right to extend the lease for a further 90 years in accordance with statute. You should give due attention before putting off your Bolsover lease extension. Putting off the cost now only increases the price you will eventually incur to extend your lease
Leasehold premises in Bolsover with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
Luke was the the leasehold owner of a high value apartment in Bolsover on the market with a lease of fraction over 61 years outstanding. Luke on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Luke to exercise his statutory right. Luke procured expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last Summer we were e-mailed by Mr W Reed , who completed a purpose-built flat in Bolsover in July 2002. The question was if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Similar properties in Bolsover with a long lease were in the region of £200,000. The average amount of ground rent was £50 billed monthly. The lease concluded on 27 November 2103. Having 77 years left we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
Mrs Isabella Morgan bought a ground floor apartment in Bolsover in March 1996. We are asked if we could estimate the compensation to the landlord could be to extend the lease by ninety years. Comparative flats in Bolsover with an extended lease were worth £260,200. The average ground rent payable was £65 billed yearly. The lease ended in 2092. Given that there were 66 years remaining we approximated the premium to the landlord for the lease extension to be between £16,200 and £18,600 exclusive of expenses.