It’s a harsh certainty that a Bolton residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Bolton property prices.Where your lease has approximately 90 years left, you should start considering a lease extension. If lease term dips under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most leasehold owners in Bolton will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor throughout the formalities.
Leasehold properties in Bolton with over 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| Skipton Building Society | |
| Virgin |
Using our service will provide you better control over the value of your Bolton leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jake was the the leasehold proprietor of a conversion flat in Bolton on the market with a lease of fraction over 59 years outstanding. Jake informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Jake to exercise his statutory right. Jake procured expert legal guidance and secured satisfactory deal informally and readily saleable.
Mrs U Smith purchased a first floor flat in Bolton in November 1995. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Comparable residencies in Bolton with 100 year plus lease were in the region of £250,000. The mid-range ground rent payable was £50 billed quarterly. The lease finished on 26 August 2095. Considering the 69 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Mr and Mrs. J Hall owned a garden apartment in Bolton in June 1996. The question was if we could estimate the price would likely be to extend the lease by 90 years. Comparable homes in Bolton with an extended lease were worth £285,000. The mid-range ground rent payable was £55 invoiced yearly. The lease expired in 2106. Taking into account 80 years outstanding we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.