Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Holbeach. Clearly, the term of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Qualifying long lease owners in Holbeach have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Do give careful deliberation before putting off your Holbeach lease extension. Holding off that expense now likely increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
The conveyancing solicitors that we work with handle Holbeach 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.
Liam owned a high value apartment in Holbeach on the market with a lease of a little over sixty years remaining. Liam informally spoke with his freeholder a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Liam to invoke his statutory right. Liam procured expert advice and secured an acceptable deal without going to tribunal and sell the flat.
Last Winter we were phoned by Mr Teddy Norbert , who took over the lease of a garden apartment in Holbeach in May 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by 90 years. Comparative properties in Holbeach with 100 year plus lease were worth £166,400. The mid-range ground rent payable was £60 invoiced every twelve months. The lease finished on 19 November 2079. Having 54 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of costs.
Last Christmas we were e-mailed by Dr E Ricardo , who took over the lease of a recently refurbished flat in Holbeach in November 2006. The dilemma was if we could estimate the premium would be to prolong the lease by ninety years. Comparative homes in Holbeach with an extended lease were worth £227,800. The average ground rent payable was £45 invoiced yearly. The lease ended in 2090. Considering the 65 years as a residual term we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 not including fees.