There is no doubt about it a leasehold flat or house in Bolton is a wasting asset as a result of the shortening lease. If the lease has, beyond 99 years to run then this decrease may be of little impact that being said there will become a stage when a lease has less than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner as opposed to later. The majority of flat owners in Bolton will qualify for this right; nevertheless a conveyancer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Bolton can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor 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 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.
Joshua was the the leasehold owner of a high value apartment in Bolton being sold with a lease of just over 61 years outstanding. Joshua on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Joshua to exercise his statutory right. Joshua obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Last month we were approach by Ms E Ramírez , who moved into a basement flat in Bolton in July 2000. We are asked if we could approximate the price would be for a ninety year lease extension. Similar residencies in Bolton with an extended lease were worth £200,800. The average amount of ground rent was £65 collected every twelve months. The lease terminated in 2085. Considering the 60 years left we approximated the premium to the landlord to extend the lease to be within £20,900 and £24,200 exclusive of legals.
Last Christmas we were contacted by Dr Tia Peterson , who was assigned a lease of a recently refurbished flat in Bolton in November 2000. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable properties in Bolton with 100 year plus lease were valued around £255,000. The average ground rent payable was £50 collected yearly. The lease came to a finish on 3 March 2096. Considering the 71 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.