Unfortunately that a Holland Park residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Holland Park property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be payable. The majority of leasehold owners in Holland Park will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Holland Park with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Holland Park,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Holland Park valuers.
Two years ago Matthew, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Holland Park. Having purchased his property 18 years ago, the unexpired term was of little importance. by good luck, he recognised he would imminently be paying an escalated premium for Extending the lease. Matthew arranged for a lease extension just ahead of time last January. Matthew and the landlord who owned the flat above subsequently settled on a premium of £5,500 . If he failed to meet the deadline, the figure would have become more exhorbitant by at least £975.
In 2012 we were called by Mr William Norbert who, having completed a one bedroom apartment in Holland Park in September 2004. The question was if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparable residencies in Holland Park with 100 year plus lease were in the region of £218,400. The mid-range ground rent payable was £60 invoiced per annum. The lease ran out on 10 November 2085. Given that there were 59 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £27,600 and £31,800 exclusive of costs.
An example of a Lease Extension case for a Holland Park flat is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case affected 1 flat. The unexpired residue of the current lease was 37.79 years.