Owning a flat usually means owning a lease of the property, which has a finite term of years. The 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 length of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the flat or house has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in Bolsover have the right to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. You should give due deliberation before putting off your Bolsover lease extension. Putting off the cost now simply increases the price you will ultimately incur for a lease extension
It is generally accepted that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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.
Off the back of lengthy negotiations with the freeholder of her two bedroom flat in Bolsover, Bethany started the lease extension process just as her lease was approaching the critical eighty-year mark. The transaction completed in May 2005. The freeholder’s costs were restricted to less than 600 GBP.
In 2010 we were called by Dr E Williams who, having purchased a studio flat in Bolsover in August 2008. The dilemma was if we could shed any light on how much (roughly) price would be for a ninety year extension to my lease. Comparable properties in Bolsover with 100 year plus lease were in the region of £200,000. The average amount of ground rent was £50 billed yearly. The lease lapsed in 2104. Given that there were 78 years outstanding we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
Last Autumn we were called by Dr J Moore , who was assigned a lease of a purpose-built apartment in Bolsover in October 2003. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Similar residencies in Bolsover with a long lease were valued around £267,600. The mid-range ground rent payable was £65 invoiced annually. The lease came to a finish in 2093. Considering the 67 years left we calculated the premium to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of professional charges.