Unfortunately that a Holbrook residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Holbrook property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher premium will be due. Most leasehold owners in Holbrook will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Holbrook with in excess of one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a landlord in Holbrook,the lease extension solicitors 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 Holbrook valuers.
Zachary was the the leasehold proprietor of a high value apartment in Holbrook on the market with a lease of a little over 72 years left. Zachary informally approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Zachary to exercise his statutory right. Zachary procured expert legal guidance and secured satisfactory deal informally and readily saleable.
Dr U Parker purchased a garden flat in Holbrook in March 2012. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparable homes in Holbrook with a long lease were in the region of £260,000. The average amount of ground rent was £50 collected yearly. The lease concluded on 24 July 2098. Taking into account 72 years left we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.
In 2012 we were e-mailed by Mr L Parker who, having purchased a garden apartment in Holbrook in June 2005. We are asked if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Identical properties in Holbrook with 100 year plus lease were worth £256,600. The average amount of ground rent was £60 invoiced annually. The lease finished on 12 June 2078. Given that there were 52 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £39,000 and £45,000 exclusive of fees.