Bolton leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Bolton tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Bolton you really ought to investigate if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Bolton with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Bolton can be a difficult process. We recommend you get professional help 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 a wealth of experience 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.
Jonathan owned a studio apartment in Bolton being marketed with a lease of fraction over 59 years outstanding. Jonathan informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jonathan to exercise his statutory right. Jonathan procured expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Last Winter we were approach by Mr I Nguyen , who bought a ground floor flat in Bolton in October 2008. We are asked if we could shed any light on how much (roughly) price could be to extend the lease by a further 90 years. Comparable flats in Bolton with an extended lease were valued about £270,000. The average amount of ground rent was £55 invoiced quarterly. The lease concluded on 24 July 2100. Having 75 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including professional charges.
Mr and Mrs. R Reed owned a basement flat in Bolton in January 1996. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparable residencies in Bolton with a long lease were in the region of £168,800. The average ground rent payable was £60 invoiced quarterly. The lease finished in 2080. Having 55 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus costs.