Bollington leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which entitles qualifying Bollington residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Bollington you would be well advised to see if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Bollington can be a difficult process. We recommend you obtain guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Bollington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to lengthy negotiations with the landlord of her first floor flat in Bollington, Robyn commenced the lease extension process as the 80 year mark was quickly approaching. The lease extension was finalised in November 2011. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. R Norbert purchased a one bedroom apartment in Bollington in May 2004. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparable residencies in Bollington with an extended lease were worth £257,800. The mid-range ground rent payable was £65 invoiced yearly. The lease ended in 2090. Given that there were 65 years unexpired we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 not including costs.
Ms U Vincent owned a basement apartment in Bollington in July 2003. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Comparative residencies in Bollington with a long lease were valued around £191,400. The average ground rent payable was £55 invoiced quarterly. The lease concluded in 2079. Taking into account 54 years remaining we approximated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 not including professional charges.