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 extending the lease can escalate substantially once the unexpired lease term is less than eighty years
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service will provide you better control over the value of your Bolton leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy discussions with the freeholder of her two bedroom apartment in Bolton, Holly initiated the lease extension process as the eighty year mark was swiftly approaching. The legal work completed in October 2008. The landlord’s costs were negotiated to a tad over 500 GBP.
Ms Eleanor Mitchell owned a ground floor flat in Bolton in March 2003. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar premises in Bolton with an extended lease were valued around £246,800. The mid-range amount of ground rent was £60 collected quarterly. The lease came to a finish on 3 April 2076. Having 50 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 plus professional charges.
Last September we were contacted by Mr and Mrs. D Walker , who completed a ground floor apartment in Bolton in September 2012. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical properties in Bolton with an extended lease were worth £203,200. The mid-range ground rent payable was £65 collected annually. The lease finished in 2087. Considering the 61 years outstanding we calculated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 not including expenses.