Bolsover leases on residential properties are gradually losing value. if your lease has in the region of ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the current lease dips lower than eighty years - otherwise a higher amount will be due. Leasehold owners in Bolsover will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not be entitled. There are also strict deadlines and formalities to follow once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
Leasehold premises in Bolsover with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| 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. |
Regardless of whether you are a tenant or a freeholder in Bolsover,the lease extension solicitors 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.
Kai owned a studio apartment in Bolsover being marketed with a lease of fraction over 59 years outstanding. Kai informally contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kai to exercise his statutory right. Kai obtained expert advice and was able to make a more informed decision and handle with the matter and sell the flat.
Last May we were contacted by Mr M Torres , who moved into a one bedroom apartment in Bolsover in November 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Comparable flats in Bolsover with 100 year plus lease were worth £295,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease lapsed in 2100. Having 74 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including fees.
In 2011 we were called by Mr and Mrs. I Ramírez who, having moved into a studio flat in Bolsover in June 1998. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Comparable premises in Bolsover with an extended lease were in the region of £243,000. The mid-range amount of ground rent was £65 collected annually. The lease finished in 2089. Taking into account 63 years outstanding we approximated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 exclusive of professional charges.