Bolton leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the current lease falls below eighty years - otherwise a higher premium will be payable. Leasehold owners in Bolton will mostly qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to comply with once the process has commenced so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Bolton with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Retaining our service gives you better control over the value of your Bolton leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Archie was the the leasehold proprietor of a 2 bedroom flat in Bolton being sold with a lease of a little over 61 years left. Archie on an informal basis approached his freeholder being a well known London-based freehold company for a lease extension. 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 yearly. Ordinarily, ground rent would not be payable on a lease extension were Archie to exercise his statutory right. Archie obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
In 2011 we were called by Ms Chantelle García who, having purchased a purpose-built flat in Bolton in August 2008. The dilemma was if we could approximate the premium would be for a ninety year extension to my lease. Similar properties in Bolton with 100 year plus lease were valued around £255,000. The mid-range ground rent payable was £50 invoiced per annum. The lease end date was in 2096. Having 71 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus legals.
In 2011 we were contacted by Dr D Rivera who, having owned a purpose-built flat in Bolton in July 2009. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Bolton with an extended lease were worth £254,200. The average amount of ground rent was £60 invoiced quarterly. The lease elapsed on 24 September 2076. Taking into account 51 years left we approximated the compensation to the landlord for the lease extension to be within £43,700 and £50,600 plus expenses.