Bolton leases on residential properties are gradually losing value. if your lease has about ninety years remaining, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Bolton will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not be entitled. There are prescribed deadlines and steps to comply with once the process is initiated so it’s best to be guided by a lawyer during the process.
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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Bolton,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Bolton valuers.
Two years ago Jake, started to get close to the 80-year threshold with the lease on his basement flat in Bolton. Having purchased his home two decades ago, the length of the lease was of no concern. Luckily, he became aware that he would imminently be paying an escalated premium for a lease extension. Jake arranged for a lease extension just in the nick of time last March. Jake and the landlord eventually agreed on the final figure of £5,000 . If the lease had slipped below 80 years, the price would have escalated by at least £1,050.
In 2014 we were e-mailed by Dr Lucy Miller who, having was assigned a lease of a basement flat in Bolton in November 2000. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Identical properties in Bolton with a long lease were worth £275,000. The average amount of ground rent was £55 invoiced yearly. The lease came to a finish in 2103. Given that there were 77 years outstanding we approximated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including expenses.
Mr Daniel Wilson bought a ground floor apartment in Bolton in October 2007. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Similar residencies in Bolton with a long lease were in the region of £183,600. The average amount of ground rent was £65 invoiced every twelve months. The lease elapsed in 2083. Having 57 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus professional charges.