With a long leasehold property in Bolsover, you are actually buying an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly notably when there are less than eighty years left. Leasehold owners in Bolsover with a lease approaching 81 years remaining should seriously consider extending it as soon as possible. When the lease term has under eighty years left, under the relevant legislation the freeholder can calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold residencies in Bolsover with in excess of one hundred years unexpired 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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 also be not less than 75 years at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Bolsover,the lease extension experts that we work with will always be willing 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 Felix, started to get near to the 80-year mark with the lease on his first floor flat in Bolsover. Having bought his home two decades ago, the length of the lease was of little bearing. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Felix extended the lease at the eleventh hour in January. Felix and the freeholder via the management company subsequently agreed on sum of £6,000 . If the lease had gone below 80 years, the price would have increased by a minimum £975.
In 2010 we were approached by Mr and Mrs. H Díaz who, having bought a first floor flat in Bolsover in July 2001. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable properties in Bolsover with a long lease were in the region of £208,600. The mid-range ground rent payable was £60 billed every twelve months. The lease elapsed on 7 January 2082. Having 57 years as a residual term we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus costs.
Last Spring we were phoned by Dr Kian Dupont , who acquired a ground floor flat in Bolsover in February 2006. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparable flats in Bolsover with an extended lease were valued about £200,000. The average amount of ground rent was £50 collected every twelve months. The lease concluded on 1 April 2102. Taking into account 77 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.