With a domestic leasehold property in Bolton, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Leasehold owners in Bolton with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. When a lease has below eighty years left, under the relevant legislation the freeholder is entitled to calculate and charge a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Bolton with in excess of 100 years unexpired 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 circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| 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 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Bolton,the lease extension solicitors that we work with will always be prepared 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.
In the wake of 6 months of unsuccessful discussions with the landlord of her two bedroom apartment in Bolton, Gemma started the lease extension process as the 80 year deadline was quickly advancing. The lease extension was finalised in October 2008. The landlord’s costs were kept to an absolute minimum.
In 2013 we were contacted by Mr E Mercier who, having owned a studio apartment in Bolton in July 1996. We are asked if we could estimate the price could be for a 90 year lease extension. Similar premises in Bolton with 100 year plus lease were worth £166,400. The average amount of ground rent was £60 invoiced quarterly. The lease lapsed on 16 September 2080. Given that there were 54 years left we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 not including fees.
Last Christmas we were contacted by Mr Jake Walker , who was assigned a lease of a one bedroom flat in Bolton in November 1999. The dilemma was if we could approximate the premium could be to prolong the lease by a further 90 years. Similar homes in Bolton with a long lease were in the region of £227,800. The mid-range ground rent payable was £45 invoiced per annum. The lease lapsed in 2091. Having 65 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus legals.