The value of Bolton 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 increase significantly once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Bolton can be a difficult process. We recommend you procure professional help from a lawyer and surveyor 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.
Trailing unsuccessful discussions with the landlord of her two bedroom flat in Bolton, Lauren commenced the lease extension process just as her lease was nearing the all-important 80-year deadline. The legal work was finalised in March 2008. The landlord’s fees were kept to an absolute minimum.
In 2009 we were e-mailed by Dr Harvey Morel who, having bought a newly refurbished apartment in Bolton in February 2010. We are asked if we could estimate the price would be to extend the lease by 90 years. Comparable properties in Bolton with a long lease were worth £270,000. The average ground rent payable was £55 collected monthly. The lease lapsed in 2102. Considering the 76 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
Last Christmas we were called by Mrs L White , who completed a basement apartment in Bolton in October 2000. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar properties in Bolton with a long lease were valued around £176,200. The mid-range ground rent payable was £65 billed every twelve months. The lease elapsed on 14 March 2082. Having 56 years outstanding we approximated the premium to the landlord for the lease extension to be between £29,500 and £34,000 exclusive of costs.