When it comes to residential leasehold premises in Holly Village, you are actually buying a right to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are less than eighty years left. Residents in Holly Village with a lease drawing near to 81 years left should seriously consider extending it sooner rather than later. When a lease has fewer than eighty years left, under the relevant statute the landlord can calculate and levy a greater amount, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Holly Village with more than one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth 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 service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Holly Village leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jude was the the leasehold proprietor of a studio apartment in Holly Village on the market with a lease of a few days over 61 years remaining. Jude informally contacted his landlord being a well known local-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. Ordinarily, ground rent would not be due on a lease extension were Jude to invoke his statutory right. Jude procured expert legal guidance and secured satisfactory resolution without resorting to tribunal and readily saleable.
In 2010 we were contacted by Dr Jonathan Moreau who, having completed a first floor apartment in Holly Village in September 2012. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparable residencies in Holly Village with an extended lease were worth £240,600. The average amount of ground rent was £60 billed per annum. The lease finished in 2088. Taking into account 62 years left we approximated the premium to the freeholder to extend the lease to be within £21,900 and £25,200 exclusive of fees.
An example of a Lease Extension matter before the tribunal for a Holly Village property is Flats 12A & 19, Evelyn Mansions Carlisle Place in June 2009. The Tribunal held that the price to be paid for the new lease of Flat 12A is £168,824, For the other flat the price was set at £169,110 This case affected 2 flats. The unexpired lease term was 56 years.