When it comes to domestic leasehold property in Holland Park, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are fewer than 80 years remaining. Residents in Holland Park with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has under eighty years left, under the current statute the freeholder is entitled to calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a property with over one hundred years unexpired lease term is worth approximately the equivalent 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 in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Holland Park 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.
After unsuccessful discussions with the freeholder of her garden apartment in Holland Park, Erin initiated the lease extension process just as her lease was nearing the critical 80-year threshold. The transaction was finalised in November 2009. The freeholder’s charges were negotiated to slightly above 650 pounds.
In 2012 we were approached by Mr and Mrs. H Wilson who, having moved into a purpose-built flat in Holland Park in January 2007. We are asked if we could estimate the premium would be for a ninety year lease extension. Identical homes in Holland Park with an extended lease were valued around £243,000. The average ground rent payable was £65 invoiced per annum. The lease expired in 2089. Having 63 years left we approximated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including costs.
An example of a Lease Extension decision for a Holland Park residence 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.