Bolsover leases on domestic deteriorating in value. Where your lease has approximately 90 years unexpired, you should start thinking about a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' on top of the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Bolsover will usually qualify for a lease extension; however a solicitor should be able confirm your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and formalities to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 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 |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with undertake Bolsover lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last October Jackson, started to get close to the 80-year mark with the lease on his studio flat in Bolsover. In buying his home two decades ago, the unexpired term was of minimal significance. Thankfully, he became aware that he would soon be paying an inflated amount for Extending the lease. Jackson arranged for a lease extension at the eleventh hour in August. Jackson and the freeholder via the management company eventually agreed on an amount of £6,000 . If the lease had slipped below eighty years, the amount would have escalated by at least £850.
In 2011 we were approached by Mr Ben Jones who, having completed a first floor flat in Bolsover in June 1998. We are asked if we could approximate the premium would likely be to prolong the lease by 90 years. Comparative residencies in Bolsover with 100 year plus lease were valued around £243,000. The mid-range ground rent payable was £65 billed monthly. The lease expired on 19 May 2088. Taking into account 63 years outstanding we calculated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 plus expenses.
Mr and Mrs. C Bonnet took over the lease of a one bedroom apartment in Bolsover in June 2003. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Similar flats in Bolsover with a long lease were valued about £181,600. The mid-range ground rent payable was £55 billed monthly. The lease concluded in 2077. Given that there were 52 years left we estimated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including fees.