Unfortunately that a Bolsover residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Bolsover property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be due. Most leasehold owners in Bolsover will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold premises in Bolsover with in excess of 100 years remaining on the lease are often 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 estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Lease extensions in Bolsover can be a difficult process. We recommend you secure professional help from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Bolsover lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Luke was the the leasehold proprietor of a studio flat in Bolsover being marketed with a lease of fraction over 72 years outstanding. Luke on an informal basis approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were Luke to exercise his statutory right. Luke procured expert advice and secured satisfactory resolution without resorting to tribunal and sell the flat.
In 2010 we were phoned by Ms Millie Morgan who, having moved into a ground floor apartment in Bolsover in February 1998. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparative homes in Bolsover with an extended lease were in the region of £191,400. The mid-range amount of ground rent was £55 collected quarterly. The lease elapsed in 2080. Having 54 years unexpired we estimated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 plus expenses.
Mr and Mrs. B Mercier bought a first floor flat in Bolsover in June 2007. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative premises in Bolsover with a long lease were valued around £295,000. The mid-range amount of ground rent was £45 collected monthly. The lease lapsed on 16 July 2100. Given that there were 74 years left we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 not including fees.