On the balance of probabilities where you own a flat in Bolton you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). 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; |
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Bolton,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bolton valuers.
Aiden owned a studio apartment in Bolton on the market with a lease of a few days over 72 years left. Aiden on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be due on a lease extension were Aiden to exercise his statutory right. Aiden procured expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2014 we were e-mailed by Dr Amy Hall who, having owned a newly refurbished apartment in Bolton in March 2002. The question was if we could estimate the premium would be to prolong the lease by ninety years. Similar properties in Bolton with a long lease were valued around £280,000. The average amount of ground rent was £55 invoiced every twelve months. The lease concluded on 12 November 2104. Considering the 78 years remaining we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of expenses.
Mr Blake Jones moved into a basement flat in Bolton in February 1995. The question was if we could approximate the price would likely be to prolong the lease by ninety years. Similar flats in Bolton with a long lease were valued about £186,000. The average ground rent payable was £65 billed per annum. The lease end date was on 15 March 2084. Having 58 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £24,700 and £28,600 plus expenses.