The value of Bolton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease 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 same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Bolton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bolton valuers.
Rory was the the leasehold owner of a studio flat in Bolton on the market with a lease of a few days over 59 years left. Rory on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Rory to invoke his statutory right. Rory procured expert advice and was able to make an informed decision and handle with the matter and readily saleable.
Last Christmas we were called by Dr James Clarke , who completed a newly refurbished apartment in Bolton in October 2002. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Comparative residencies in Bolton with a long lease were valued about £210,600. The mid-range amount of ground rent was £45 collected per annum. The lease end date was in 2088. Considering the 62 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 exclusive of fees.
In 2012 we were phoned by Dr Isabel Howard who, having acquired a purpose-built flat in Bolton in January 2010. We are asked if we could estimate the premium could be to extend the lease by 90 years. Identical properties in Bolton with an extended lease were worth £260,000. The mid-range amount of ground rent was £50 collected monthly. The lease concluded on 20 August 2099. Given that there were 73 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including fees.