The market value of Bolton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the unexpired lease term is less than eighty years
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | 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. |
Regardless of whether you are a tenant or a landlord in Bolton,the lease extension lawyers that we work with will always be willing 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.
Half a year ago Elijah, started to get close to the eighty-year threshold with the lease on his studio apartment in Bolton. Having bought his home twenty years previously, the unexpired term was of no interest. Fortunately, he recognised he needed to take action soon on a lease extension. Elijah extended the lease just under the wire last September. Elijah and the freeholder subsequently settled on the final figure of £5,000 . If the lease had dropped to less than eighty years, the sum would have become more costly by a minimum £925.
In 2010 we were contacted by Mr Jamie Murphy who, having took over the lease of a recently refurbished apartment in Bolton in May 2006. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Similar flats in Bolton with an extended lease were in the region of £218,000. The mid-range ground rent payable was £45 billed annually. The lease came to a finish on 11 September 2088. Having 63 years remaining we approximated the premium to the freeholder for the lease extension to be between £17,100 and £19,800 not including costs.
In 2010 we were approached by Mrs J Ward who, having completed a first floor apartment in Bolton in January 1998. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical premises in Bolton with a long lease were valued around £265,000. The average amount of ground rent was £50 collected yearly. The lease end date was in 2099. Given that there were 74 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.