Why you should start your Bolsover lease extension

Top reasons for lease extension now:

A Bolsover lease depreciates with the years remaining on the lease.

As the the remaining lease term of a Bolsover residential lease lessens so does its value and therefore the value of your property. Where the lease has, beyond one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending sooner rather than later. Many flat owners in Bolsover will meet the qualifying criteria; that being said a conveyancer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

An extended lease is almost the same value as a freehold

Leasehold residencies in Bolsover with in excess of 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.

Lenders may decide not to lend with a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past mortgage companies would grant a mortgage on a lease with 25 years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as standard.

What makes us experts in Bolsover lease extensions?

Irrespective of whether you are a tenant or a landlord in Bolsover,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bolsover valuers.

Bolsover Lease Extension Example Cases:

Alfie, Bolsover, Derbyshire,

Alfie owned a conversion apartment in Bolsover being sold with a lease of a little over 72 years unexpired. Alfie on an informal basis contacted his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Alfie to invoke his statutory right. Alfie procured expert advice and secured an acceptable deal without resorting to tribunal and readily saleable.

Bolsover case:

Last Winter we were e-mailed by Dr Ben Brooks , who completed a ground floor apartment in Bolsover in May 2008. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Similar premises in Bolsover with a long lease were valued around £223,400. The mid-range amount of ground rent was £60 invoiced per annum. The lease ran out in 2085. Having 59 years remaining we calculated the premium to the freeholder to extend the lease to be between £27,600 and £31,800 not including fees.

Bolsover case:

Mr Toby Jones moved into a garden flat in Bolsover in November 2001. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Identical flats in Bolsover with 100 year plus lease were in the region of £205,000. The mid-range ground rent payable was £50 collected monthly. The lease ended on 5 March 2105. Having 79 years outstanding we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.