Chances are that if you own a flat in Bollington you actually own a long leasehold interest over your property
Leasehold properties in Bollington with in excess of 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| 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 Bollington leasehold, as your property will be more valuable and saleable in terms 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.
In the wake of 6 months of unsuccessful discussions with the freeholder of her ground floor flat in Bollington, Jasmine commenced the lease extension process just as the lease was nearing the crucial 80-year threshold. The transaction was finalised in July 2005. The landlord’s costs were kept to an absolute minimum.
Last Winter we were e-mailed by Mr and Mrs. C Bertrand , who bought a studio flat in Bollington in October 1995. We are asked if we could estimate the premium would likely be for a ninety year lease extension. Identical homes in Bollington with an extended lease were worth £205,000. The mid-range ground rent payable was £50 invoiced per annum. The lease end date was on 11 June 2105. Taking into account 79 years remaining we calculated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
Dr O Sharif owned a basement apartment in Bollington in July 1996. We are asked if we could approximate the premium would be for a 90 year lease extension. Identical properties in Bollington with a long lease were valued about £275,000. The average ground rent payable was £65 collected quarterly. The lease terminated in 2094. Taking into account 68 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.