The only way is down when it comes to High Holborn lease terms. High Holborn leaseholds that have a residual term fewer than eighty years will de-escalate in value even faster, and the cost of extending your lease will rise.
It is generally accepted that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle High Holborn 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.
Following protracted correspondence with the freeholder of her basement apartment in High Holborn, Danielle commenced the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The transaction was concluded in August 2013. The landlord’s costs were kept to an absolute minimum.
Mrs W Murphy acquired a ground floor apartment in High Holborn in October 1996. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in High Holborn with 100 year plus lease were in the region of £216,000. The average ground rent payable was £60 invoiced yearly. The lease termination date was on 15 January 2084. Having 58 years unexpired we approximated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.
An example of a Lease Extension decision for a High Holborn flat is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case affected 1 flat. The unexpired term as at the valuation date was 66.8 years.