The re-sale value of a leasehold property in Bolton depends on how many years the lease has remaining. If it is close to or less than 80 years you should foresee difficulties on re-sale, so it is advisable to arrange for a lease extension before purchasing. It is preferable to start the lease extension process when a lease still has 82 years to run so that all matters can be finalised in advance of the eighty year cut off point. Statute enables Bolton qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Bolton can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
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 in-depth market knowledge 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.
Off the back of lengthy correspondence with the freeholder of her leasehold apartment in Bolton, Chloe commenced the lease extension process as the 80 year mark was swiftly coming. The transaction was finalised in January 2013. The freeholder’s costs were restricted to slightly above 700 GBP.
Dr G Pérez purchased a one bedroom flat in Bolton in October 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by ninety years. Comparative premises in Bolton with an extended lease were in the region of £285,000. The average ground rent payable was £55 collected per annum. The lease concluded in 2106. Given that there were 80 years outstanding we approximated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.
Ms F King bought a garden flat in Bolton in November 2005. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Bolton with a long lease were valued around £200,800. The average amount of ground rent was £65 collected yearly. The lease came to a finish on 7 October 2086. Given that there were 60 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £20,900 and £24,200 exclusive of costs.