The only way is down when it comes to Bolton lease terms. Bolton properties that have a remaining term less than than 80 years will drop in value at a rapid rate, and the cost to extend your lease will increase.
Leasehold properties in Bolton with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with handle Bolton 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 conveyancer we work with provide it.
Hugo owned a conversion flat in Bolton on the market with a lease of a few days over sixty years remaining. Hugo informally spoke with his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be payable on a lease extension were Hugo to exercise his statutory right. Hugo procured expert legal guidance and secured an acceptable resolution informally and sell the flat.
In 2009 we were e-mailed by Ms C Moore who, having bought a ground floor flat in Bolton in June 2002. The dilemma was if we could approximate the price would be to prolong the lease by ninety years. Identical residencies in Bolton with 100 year plus lease were valued about £250,000. The average ground rent payable was £50 billed annually. The lease concluded on 9 July 2096. Considering the 70 years remaining we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. R Scott was assigned a lease of a first floor flat in Bolton in June 2003. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Similar residencies in Bolton with an extended lease were valued about £246,800. The mid-range amount of ground rent was £60 billed annually. The lease terminated on 26 March 2076. Given that there were 50 years as a residual term we calculated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 exclusive of fees.