The only way is down when it comes to Holland Park lease terms. Holland Park properties that have a lease term less than than 80 years will de-escalate in market price at a rapid rate, and the cost to extend your lease will rise.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years in the future.
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Holland Park leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Jacob, started to get close to the eighty-year mark with the lease on his one bedroom flat in Holland Park. Having bought his home two decades ago, the lease term was of minimal interest. As luck would have it, he recognised he needed to take action soon on Extending the lease. Jacob was able to extend his lease just under the wire in September. Jacob and the freeholder via the management company subsequently settled on a premium of £5,000 . If the lease had slipped to less than eighty years, the price would have escalated by at least £1,025.
In 2009 we were phoned by Dr P Clarke who, having moved into a purpose-built flat in Holland Park in July 2005. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Comparable homes in Holland Park with 100 year plus lease were worth £208,600. The average amount of ground rent was £60 invoiced annually. The lease came to a finish on 24 June 2083. Taking into account 57 years left we estimated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including fees.
An example of a Lease Extension decision for a Holland Park flat is 2 Grove House 95 Addison Road in October 2013. the Tribunal decided that the premium to bepaid for a new lease is £50,050. This case was in relation to 1 flat. The unexpired lease term was 68.4 years.