Holland Park leases on domestic properties are gradually losing value. Where your lease has about 90 years left, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Holland Park will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some situations you may not qualify. There are prescribed deadlines and formalities to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with undertake Holland Park 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.
Adam was the the leasehold owner of a high value apartment in Holland Park being sold with a lease of a little over 61 years left. Adam on an informal basis spoke with his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Adam to exercise his statutory right. Adam obtained expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2011 we were approached by Dr S Lefèvre who, having moved into a one bedroom flat in Holland Park in October 2001. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Identical flats in Holland Park with a long lease were in the region of £210,000. The average amount of ground rent was £50 collected yearly. The lease lapsed in 2105. Taking into account 80 years as a residual term we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.
An example of a Lease Extension case for a Holland Park flat is 93 Oakwood Court in June 2010. the LVT determined that the premium to be paid for the new lease was £492,083, This case was in relation to 1 flat. The unexpired lease term was 37.79 years.