When it comes to long leasehold property in Holbeach, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years remaining. Anyone in Holbeach with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. When a lease has below eighty years outstanding, under the current statute the freeholder can calculate and charge a greater premium, based on a technical calculation, known as “marriage value” which is due.
It is generally accepted that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Coventry Building Society | |
| National Westminster Bank | |
| Santander | |
| Yorkshire Building Society |
The conveyancers 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 lawyer we work with provide it.
After unsuccessful correspondence with the freeholder of her first floor flat in Holbeach, Sophie initiated the lease extension process as the eighty year mark was quickly approaching. The transaction completed in September 2010. The landlord’s fees were kept to an absolute minimum.
In 2012 we were called by Mr and Mrs. P Kelly who, having acquired a recently refurbished apartment in Holbeach in November 2011. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparable residencies in Holbeach with an extended lease were valued about £245,000. The mid-range amount of ground rent was £50 billed quarterly. The lease ran out in 2094. Taking into account 68 years as a residual term we approximated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including costs.
Mr and Mrs. L Lee completed a recently refurbished apartment in Holbeach in May 1996. We are asked if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical homes in Holbeach with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £55 billed quarterly. The lease concluded on 1 May 2105. Given that there were 79 years unexpired we calculated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of costs.