Holly Village leases on residential properties are gradually losing value. Where your lease has about ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease dips lower than eighty years - otherwise a higher premium will be payable. Leasehold owners in Holly Village will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain cases you may not qualify. There are prescribed deadlines and steps to comply with once the process has commenced so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Holly Village,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Holly Village valuers.
In recent months Charlie, came critically near to the eighty-year threshold with the lease on his studio flat in Holly Village. In buying his flat 19 years previously, the lease term was of minimal interest. As luck would have it, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Charlie was able to extend his lease at the eleventh hour in July. Charlie and the landlord who owned the flat above ultimately settled on a premium of £5,000 . If the lease had slid lower than eighty years, the price would have escalated by at least £925.
In 2013 we were phoned by Dr Jason Vincent who, having owned a purpose-built flat in Holly Village in March 2009. The question was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Similar premises in Holly Village with an extended lease were valued around £198,800. The average amount of ground rent was £55 collected yearly. The lease expired on 14 July 2080. Having 55 years outstanding we calculated the premium to the landlord for the lease extension to be within £33,300 and £38,400 plus fees.
An example of a Lease Extension decision for a Holly Village flat 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 term was 56 years.