Why you should start your Holmrook lease extension

Top reasons for lease extension now:

Increase your lease and increase your Holmrook property value

Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Holmrook. Inevitably, the length of lease left shortens over time. This may slip by relatively unnoticed when the property has to be disposed of or refinanced. The shorter the lease the less it is worth and the more expensive it will be to obtain a lease extension. Eligible leaseholders in Holmrook have the right to extend the lease for a further ninety years in accordance with legislation. Do give due deliberation before delaying your Holmrook lease extension. Putting off the cost now only increases the price you will eventually have to pay to extend your lease

Holmrook property with a lease extension has roughly the same value as a freehold

It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years ahead.

Lenders will not issue a mortgage on a short lease

The propensity since 2008 has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the unexpired lease term required by banks has increased. In the past banks would grant a mortgage on a lease with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Holmrook lease extensions?

Regardless of whether you are a tenant or a freeholder in Holmrook,the lease extension experts that we work with will always be happy 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.

Holmrook Lease Extension Example Cases:

Toby, Holmrook, Cumbria,

Toby owned a conversion flat in Holmrook being sold with a lease of a few days over 59 years left. Toby informally spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Toby to invoke his statutory right. Toby procured expert advice and was able to make an informed judgement and handle with the matter and sell the flat.

Holmrook case:

Last Christmas we were contacted by Mr and Mrs. T Thomas , who took over the lease of a one bedroom apartment in Holmrook in April 2004. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative residencies in Holmrook with an extended lease were worth £295,000. The average ground rent payable was £45 collected per annum. The lease came to a finish in 2100. Having 74 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.

Holmrook case:

In 2010 we were phoned by Ms Rachael Murphy who, having acquired a one bedroom apartment in Holmrook in February 2001. The dilemma was if we could shed any light on how much (approximately) premium could be for a 90 year lease extension. Comparable residencies in Holmrook with a long lease were valued around £248,000. The mid-range ground rent payable was £65 invoiced annually. The lease ran out in 2089. Considering the 63 years remaining we calculated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 not including expenses.