The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Bolton have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please think carefully before delaying your Bolton lease extension. Shelving the costs now simply increases the price you will eventually have to pay to extend the lease.
It is generally considered that a property with more than one hundred 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 many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea Building Society | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Bolton can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Bolton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Max owned a conversion flat in Bolton being marketed with a lease of just over 72 years remaining. Max on an informal basis contacted his freeholder a well known London-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Max to invoke his statutory right. Max procured expert advice and secured an acceptable deal informally and readily saleable.
In 2014 we were approached by Mr and Mrs. J Phillips who, having bought a newly refurbished apartment in Bolton in November 2010. The question was if we could estimate the price could be for a 90 year lease extension. Comparative homes in Bolton with 100 year plus lease were in the region of £260,000. The average amount of ground rent was £50 invoiced per annum. The lease concluded in 2098. Given that there were 72 years left we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.
Dr U Thompson bought a studio apartment in Bolton in September 1995. We are asked if we could approximate the price would be for a ninety year lease extension. Similar flats in Bolton with 100 year plus lease were in the region of £256,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease lapsed on 20 November 2078. Taking into account 52 years remaining we estimated the compensation to the freeholder for the lease extension to be between £41,800 and £48,400 not including costs.