With a long leasehold property in Bolsover, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater notably once there are fewer than eighty years remaining. Residents in Bolsover with a lease drawing near to 81 years left should seriously think of extending it as soon as possible. When the lease term has fewer than eighty years outstanding, under the relevant statute the freeholder is entitled to calculate and demand a greater amount, based on a technical calculation, known as “marriage value” which is due.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for decades to come.
| 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; |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Bolsover leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Harrison, started to get near to the eighty-year threshold with the lease on his one bedroom flat in Bolsover. In buying his property twenty years previously, the lease term was of minimal bearing. by good luck, he noticed he would imminently be paying an escalated premium for Extending the lease. Harrison was able to extend his lease just under the wire in July. Harrison and the landlord ultimately agreed on an amount of £6,000 . If the lease had gone to less than eighty years, the sum would have escalated by a minimum £850.
In 2010 we were e-mailed by Mr and Mrs. F François who, having took over the lease of a garden apartment in Bolsover in March 1998. We are asked if we could approximate the price would likely be for a ninety year extension to my lease. Comparative premises in Bolsover with 100 year plus lease were worth £225,800. The mid-range amount of ground rent was £60 invoiced per annum. The lease terminated on 12 May 2086. Considering the 60 years left we approximated the premium to the landlord for the lease extension to be between £23,800 and £27,400 not including expenses.
Last Winter we were contacted by Mr Hugo Cook , who completed a studio apartment in Bolsover in January 2007. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar residencies in Bolsover with 100 year plus lease were in the region of £210,000. The average ground rent payable was £50 billed quarterly. The lease lapsed on 3 September 2106. Considering the 80 years remaining we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including legals.