Top reasons for Bolton lease extension

Why you should start your Bolton lease extension today:

A Bolton leasehold property depreciates with the years remaining on the lease.

When it comes to residential leasehold premises in Bolton, 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. Even though this may appear 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 especially once there are less than eighty years left. Residents in Bolton with a lease approaching 81 years remaining should seriously think of extending it without delay. When a lease has under eighty years remaining, under the relevant legislation the landlord can calculate and demand a larger premium, based on a technical calculation, strangely termed as “marriage value” which is due.

An extended lease is almost the same value as a freehold

Leasehold premises in Bolton with over 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.

Lenders may decide not to finance a property on a short lease

Mortgage companies do not like short residential leases. You most probably experience difficulties where you need to sell your flat in Bolton if the remaining lease term is under the criteria set by the majority of mortgage companies. Different mortgage companies have varying requirements but in the main they are looking for a minimum remaining lease term of seventy years.

Get in touch with one of our Bolton lease extension solicitors or enfranchisement solicitors

Using our service gives you enhanced control over the value of your Bolton leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Bolton Lease Extension Example Cases:

Seth, Bolton, Greater Manchester

16 months ago Seth, came critically near to the 80-year mark with the lease on his purpose- built apartment in Bolton. In buying his home two decades ago, the length of the lease was of minimal importance. Fortunately, it dawned on him that he would imminently be paying an escalated premium for Extending the lease. Seth extended the lease just ahead of time last June. Seth and the freeholder via the management company ultimately agreed on the final figure of £6,000 . If he failed to meet the deadline, the figure would have escalated by at least £875.

Bolton case:

Mr and Mrs. L Davies acquired a ground floor flat in Bolton in May 1999. We are asked if we could shed any light on how much (approximately) premium would likely be for a ninety year extension to my lease. Comparative flats in Bolton with an extended lease were valued around £183,600. The average ground rent payable was £65 collected annually. The lease elapsed in 2083. Given that there were 57 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.

Bolton case:

Last Spring we were e-mailed by Mr Freddie Bennett , who owned a first floor apartment in Bolton in July 1998. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Comparative properties in Bolton with 100 year plus lease were valued about £245,000. The average ground rent payable was £45 billed every twelve months. The lease finished on 25 April 2094. Taking into account 68 years remaining we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of legals.