With a domestic leasehold property in Bollington, you are actually buying an entitlement to live in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater especially when there are less than eighty years left. Residents in Bollington with a lease approaching 81 years unexpired should seriously consider extending it sooner as opposed to later. When a lease has under 80 years left, under the current legislation the landlord can calculate and levy a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 Bollington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Nathan, started to get near to the 80-year threshold with the lease on his garden apartment in Bollington. Having purchased his home 19 years ago, the unexpired term was of minimal relevance. Fortunately, it dawned on him that he needed to take steps soon on Extending the lease. Nathan was able to extend his lease at the eleventh hour in August. Nathan and the landlord who owned the flat above in the end agreed on an amount of £5,000 . If he had missed the deadline, the price would have escalated by at least £900.
In 2012 we were phoned by Mr and Mrs. C White who, having completed a newly refurbished flat in Bollington in September 2001. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Identical properties in Bollington with a long lease were in the region of £240,600. The average amount of ground rent was £60 billed per annum. The lease ended in 2087. Given that there were 62 years remaining we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 not including legals.
Mr and Mrs. A Gunderson completed a garden apartment in Bollington in September 2004. We are asked if we could approximate the price could be to extend the lease by an additional years. Comparable premises in Bollington with 100 year plus lease were worth £174,200. The mid-range amount of ground rent was £55 collected yearly. The lease terminated in 2076. Taking into account 51 years unexpired we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of professional charges.