Holmrook 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 your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Holmrook residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Holmrook you really ought to investigate if your lease has between seventy and 90 years left. There are compelling reasons why a Holmrook leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
It is generally considered that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you enhanced control over the value of your Holmrook leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of protracted negotiations with the landlord of her basement flat in Holmrook, Abigail started the lease extension process as the 80 year mark was swiftly coming. The transaction was concluded in November 2005. The freeholder’s fees were restricted to less than 700 pounds.
In 2012 we were called by Ms Naomi Cook who, having purchased a newly refurbished apartment in Holmrook in January 2003. The question was if we could estimate the compensation to the landlord could be for a ninety year lease extension. Identical homes in Holmrook with 100 year plus lease were valued about £216,000. The mid-range ground rent payable was £60 collected yearly. The lease ran out in 2084. Having 58 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of expenses.
Dr Harvey Martinez acquired a studio apartment in Holmrook in September 1998. The question was if we could estimate the premium could be to extend the lease by an additional years. Comparative premises in Holmrook with a long lease were in the region of £205,000. The average amount of ground rent was £50 collected yearly. The lease terminated in 2104. Taking into account 78 years left we estimated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 exclusive of expenses.