When it comes to residential leasehold property in Holbrook, you are in fact renting it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are fewer than 80 years remaining. Leasehold owners in Holbrook with a lease approaching 81 years remaining should seriously think of extending it without delay. When a lease has below eighty years remaining, under the current Act the freeholder can calculate and levy a larger premium, assessed on a technical computation, known as “marriage value” which is due.
Leasehold residencies 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless 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 experience and the close ties they enjoy with Holbrook valuers.
Trailing unsuccessful correspondence with the freeholder of her first floor flat in Holbrook, Francesca initiated the lease extension process just as the lease was approaching the critical eighty-year threshold. The transaction was concluded in September 2011. The freeholder’s costs were negotiated to below five hundred pounds.
In 2010 we were approached by Mr and Mrs. W Brown who, having completed a studio apartment in Holbrook in January 2003. The dilemma was if we could estimate the premium would be to prolong the lease by ninety years. Identical flats in Holbrook with 100 year plus lease were in the region of £227,800. The mid-range ground rent payable was £45 invoiced monthly. The lease ran out in 2090. Having 65 years unexpired we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of expenses.
Last Winter we were called by Mr Jake Dupont , who acquired a purpose-built apartment in Holbrook in April 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Similar premises in Holbrook with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 collected per annum. The lease termination date was on 15 May 2101. Given that there were 76 years remaining we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of fees.