For anyone whose Holbrook home is held on a long lease, the message is clear – if you do nothing, your property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension.
Leasehold residencies in Holbrook with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
Using our service gives you increased control over the value of your Holbrook leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Dexter, came dangerously near to the eighty-year threshold with the lease on his first floor apartment in Holbrook. Having purchased his home two decades ago, the unexpired term was of no bearing. by good luck, he recognised he would imminently be paying an inflated amount for Extending the lease. Dexter was able to extend his lease just in the nick of time last August. Dexter and the landlord who owned the flat above eventually settled on the final figure of £5,500 . If he not met the deadline, the amount would have become more costly by at least £1,125.
Mr and Mrs. R Campbell bought a garden flat in Holbrook in July 2012. The dilemma was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Similar residencies in Holbrook with 100 year plus lease were valued about £200,800. The average ground rent payable was £65 invoiced per annum. The lease finished in 2086. Taking into account 60 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of expenses.
Ms C Walker acquired a one bedroom flat in Holbrook in May 2007. We are asked if we could approximate the premium could be to extend the lease by an additional years. Similar premises in Holbrook with 100 year plus lease were worth £255,000. The average ground rent payable was £50 invoiced every twelve months. The lease elapsed in 2097. Taking into account 71 years outstanding we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.