The nearer a residential lease in Holmrook gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, over 125 years to run then this decrease may be of little impact that being said there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner as opposed to later. Most flat owners in Holmrook will qualify for this right; that being said a conveyancing solicitor should be able to confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Holmrook with more than one hundred years left on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Holmrook,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Holmrook valuers.
Last year Alfie, started to get close to the eighty-year threshold with the lease on his one bedroom flat in Holmrook. In buying his flat twenty years ago, the unexpired term was of minimal interest. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Alfie arranged for a lease extension at the eleventh hour in July. Alfie and the landlord who owned the flat above subsequently settled on an amount of £6,000 . If he not met the deadline, the premium would have become more costly by a minimum £1,100.
Dr L Mercier moved into a studio apartment in Holmrook in January 1995. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Identical flats in Holmrook with an extended lease were valued about £248,000. The average amount of ground rent was £65 collected quarterly. The lease ended in 2088. Having 63 years outstanding we estimated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus costs.
Mr and Mrs. A Allen took over the lease of a recently refurbished flat in Holmrook in May 2007. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative premises in Holmrook with 100 year plus lease were valued around £181,600. The mid-range ground rent payable was £55 collected every twelve months. The lease came to a finish on 15 October 2077. Given that there were 52 years outstanding we approximated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including professional charges.