The market value of Bolsover leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the unexpired lease term is less than eighty years
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Skipton Building Society |
The conveyancers that we work with handle 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 conveyancing solicitor we work with provide it.
Ethan owned a 2 bedroom flat in Bolsover on the market with a lease of just over 61 years left. Ethan on an informal basis spoke with his landlord being a well known London-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 on the basis of an increased rent to £50 per annum. No ground rent would be due on a lease extension were Ethan to exercise his statutory right. Ethan obtained expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2011 we were called by Mr and Mrs. O Lambert who, having bought a purpose-built flat in Bolsover in October 2012. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative properties in Bolsover with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 billed annually. The lease terminated in 2081. Given that there were 55 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 not including professional charges.
Last month we were called by Dr Finn Sánchez , who moved into a one bedroom apartment in Bolsover in July 1996. The question was if we could approximate the price could be for a 90 year lease extension. Identical properties in Bolsover with 100 year plus lease were in the region of £295,000. The average amount of ground rent was £50 invoiced monthly. The lease concluded in 2101. Taking into account 75 years outstanding we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.