The basic rule is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Holmrook may extend the lease for a further ninety years under legislation. Do think carefully before delaying your Holmrook lease extension. Putting off that expense now simply increases the premium you will ultimately have to pay to extend the lease.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Holmrook 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 conveyancer we work with provide it.
Stanley owned a 2 bedroom flat in Holmrook being sold with a lease of a few days over fifty eight years remaining. Stanley on an informal basis spoke with his landlord being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Stanley to exercise his statutory right. Stanley obtained expert advice and secured satisfactory deal without resorting to tribunal and readily saleable.
Mrs Emily Bernard bought a ground floor apartment in Holmrook in October 2007. The question was if we could approximate the price could be to extend the lease by an additional years. Identical residencies in Holmrook with an extended lease were valued about £223,400. The mid-range amount of ground rent was £60 invoiced quarterly. The lease elapsed on 1 July 2085. Considering the 59 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £27,600 and £31,800 exclusive of costs.
Mr and Mrs. W Torres completed a first floor apartment in Holmrook in February 2004. We are asked if we could estimate the premium would likely be to extend the lease by ninety years. Similar flats in Holmrook with a long lease were valued about £205,000. The mid-range amount of ground rent was £50 billed monthly. The lease ended in 2105. Given that there were 79 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 plus costs.