On the balance of probabilities where you own a flat in Bolton you actually own a long leasehold interest over your property
It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Godiva Mortgages | 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Bolton can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Bolton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Logan, came precariously close to the 80-year mark with the lease on his basement flat in Bolton. In buying his home two decades ago, the unexpired term was of minimal concern. by good luck, he noticed he would imminently be paying an escalated premium for Extending the lease. Logan was able to extend his lease just ahead of time in March. Logan and the freeholder ultimately agreed on the final figure of £6,000 . If he had missed the deadline, the premium would have increased by a minimum £875.
Dr Joseph Garcia moved into a garden apartment in Bolton in July 1995. The dilemma was if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparative flats in Bolton with a long lease were valued around £245,000. The average ground rent payable was £45 billed yearly. The lease termination date was in 2094. Having 68 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of legals.
Last September we were called by Mr Isaac Stewart , who took over the lease of a garden apartment in Bolton in September 2007. The question was if we could approximate the premium would be to extend the lease by a further 90 years. Similar flats in Bolton with a long lease were worth £280,000. The average amount of ground rent was £55 billed per annum. The lease elapsed in 2104. Considering the 78 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.