Holland Park leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Holland Park enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Holland Park you would be well advised to check if your lease has between 70 and 90 years remaining. There are compelling reasons why a Holland Park flat owner with a lease having around 80 years left should take action to ensure that a lease extension is actioned without delay
Leasehold residencies in Holland Park with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Holland Park can be a difficult process. We recommend you secure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Holland Park lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After lengthy discussions with the landlord of her first floor apartment in Holland Park, Leah commenced the lease extension process as the eighty year threshold was fast nearing. The lease extension was concluded in May 2007. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were contacted by Mrs F Wilson who, having moved into a garden apartment in Holland Park in September 1995. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Comparable properties in Holland Park with an extended lease were worth £191,400. The average ground rent payable was £55 collected quarterly. The lease expired on 18 August 2079. Considering the 54 years unexpired we approximated the premium to the landlord for the lease extension to be between £27,600 and £31,800 plus fees.
An example of a Lease Extension matter before the tribunal 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 related to 1 flat. The number of years remaining on the existing lease(s) was 37.79 years.