When it comes to residential leasehold property in Bolsover, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are less than 80 years remaining. Anyone in Bolsover with a lease nearing 81 years left should seriously think of extending it without delay. When a lease has less than 80 years outstanding, under the current Act the freeholder can calculate and charge a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in Bolsover with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Bolsover,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bolsover valuers.
Two years ago Teddy, started to get close to the 80-year threshold with the lease on his one bedroom flat in Bolsover. Having bought his home two decades ago, the unexpired term was of little significance. by good luck, he recognised he would imminently be paying way over the odds for Extending the lease. Teddy extended the lease at the eleventh hour last June. Teddy and the freeholder via the managing agents eventually agreed on sum of £6,000 . If the lease had descended lower than eighty years, the sum would have gone up by at least £1,125.
In 2009 we were phoned by Mr and Mrs. S Dupont who, having moved into a studio flat in Bolsover in April 2009. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable residencies in Bolsover with 100 year plus lease were valued around £240,600. The average amount of ground rent was £60 invoiced quarterly. The lease termination date was on 20 June 2088. Having 62 years outstanding we estimated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus fees.
Last Christmas we were phoned by Ms Katherine García , who took over the lease of a one bedroom flat in Bolsover in April 2000. We are asked if we could approximate the premium could be for a 90 year lease extension. Comparable homes in Bolsover with a long lease were valued about £174,200. The average amount of ground rent was £55 billed yearly. The lease end date was on 14 May 2077. Having 51 years remaining we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of costs.