Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Bolton. Clearly, the period of lease left shortens over time. This is often ignored and only becomes a problem when the property has to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Bolton have the legal entitlement to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. You should give careful consideration before delaying your Bolton lease extension. Putting off that expense now only increases the price you will eventually incur to extend your lease
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
The conveyancers that we work with undertake Bolton lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Following protracted negotiations with the freeholder of her basement apartment in Bolton, Molly initiated the lease extension process just as the lease was approaching the critical 80-year mark. The transaction was finalised in February 2005. The freeholder’s fees were kept to an absolute minimum.
Mr Jamie Morel bought a one bedroom apartment in Bolton in March 2002. We are asked if we could approximate the price would be for a ninety year extension to my lease. Comparative properties in Bolton with a long lease were valued around £260,000. The mid-range ground rent payable was £50 invoiced yearly. The lease lapsed in 2099. Taking into account 73 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
Last Autumn we were contacted by Mr and Mrs. U Williams , who completed a purpose-built flat in Bolton in July 2001. We are asked if we could estimate the premium would likely be to prolong the lease by ninety years. Comparative properties in Bolton with a long lease were in the region of £264,000. The mid-range ground rent payable was £60 billed annually. The lease elapsed in 2079. Having 53 years remaining we calculated the premium to the landlord for the lease extension to be within £37,100 and £42,800 exclusive of expenses.