Bollington leases on domestic properties are gradually losing value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be due. Flat owners in Bollington will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some situations you may not qualify. There are also strict timetables and procedures to comply with once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
Regardless of whether you are a tenant or a landlord in Bollington,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Bollington valuers.
Thomas was the the leasehold proprietor of a high value apartment in Bollington being sold with a lease of a little over fifty eight years remaining. Thomas on an informal basis spoke with his landlord being a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Thomas to invoke his statutory right. Thomas procured expert legal guidance and secured an acceptable resolution without going to tribunal and sell the flat.
In 2011 we were called by Dr A Morel who, having took over the lease of a one bedroom flat in Bollington in June 2012. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Identical flats in Bollington with an extended lease were worth £250,400. The average ground rent payable was £65 invoiced yearly. The lease concluded in 2090. Considering the 64 years unexpired we approximated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 exclusive of costs.
Dr Chloe Mitchell was assigned a lease of a studio apartment in Bollington in February 1999. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative premises in Bollington with a long lease were valued around £189,000. The mid-range ground rent payable was £55 invoiced annually. The lease concluded on 17 October 2079. Having 53 years remaining we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 exclusive of expenses.