Holmrook leases on residential properties are gradually decreasing in 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. Legislation has been in place for sometime now allowing qualifying Holmrook residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Holmrook you would be well advised to check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than 100 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 residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Holmrook leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of lengthy correspondence with the freeholder of her leasehold flat in Holmrook, Sophie started the lease extension process just as the lease was approaching the critical 80-year mark. The legal work was concluded in June 2015. The freeholder’s charges were kept to an absolute minimum.
Mr V Carter owned a ground floor apartment in Holmrook in November 2002. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative flats in Holmrook with an extended lease were worth £257,800. The average ground rent payable was £65 billed monthly. The lease termination date was on 13 November 2091. Given that there were 65 years remaining we approximated the compensation to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of professional charges.
Mrs Abigail Laurent purchased a basement flat in Holmrook in January 2002. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Similar homes in Holmrook with an extended lease were worth £196,400. The average amount of ground rent was £55 invoiced every twelve months. The lease termination date was on 13 July 2080. Given that there were 54 years remaining we approximated the compensation to the freeholder for the lease extension to be within £34,200 and £39,600 not including expenses.