Holbrook leases on domestic properties are gradually losing value. if your lease has about 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the current lease falls lower than 80 years - otherwise a higher amount will be payable. Leasehold owners in Holbrook will usually be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain circumstances you may not qualify. There are also strict timetables and steps to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Holbrook with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Holbrook 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 conveyancing solicitor we work with provide it.
Off the back of protracted correspondence with the freeholder of her garden flat in Holbrook, Francesca started the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The lease extension completed in March 2005. The freeholder’s fees were kept to an absolute minimum.
Mrs Jennifer Bell took over the lease of a basement flat in Holbrook in February 2003. We are asked if we could estimate the price could be for a ninety year lease extension. Comparable flats in Holbrook with an extended lease were in the region of £275,000. The mid-range ground rent payable was £55 billed per annum. The lease terminated on 9 August 2102. Having 77 years remaining we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.
Last January we were contacted by Mr and Mrs. F Anderson , who moved into a first floor apartment in Holbrook in November 1999. The dilemma was if we could estimate the premium would be to extend the lease by ninety years. Comparable properties in Holbrook with 100 year plus lease were valued around £183,600. The average amount of ground rent was £65 billed monthly. The lease end date was in 2082. Considering the 57 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of fees.