The market value of Hollywood leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase materialy once the remaining term is below than 80 years
Leasehold residencies in Hollywood with more than 100 years remaining on the lease are often 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 freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Hollywood can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Hollywood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful correspondence with the freeholder of her garden flat in Hollywood, Kate started the lease extension process just as the lease was coming close to the crucial 80-year mark. The lease extension completed in November 2008. The freeholder’s charges were kept to an absolute minimum.
Last Christmas we were approach by Mr and Mrs. L Walker , who acquired a purpose-built apartment in Hollywood in January 2001. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Similar premises in Hollywood with 100 year plus lease were worth £183,600. The average ground rent payable was £65 billed yearly. The lease elapsed in 2083. Considering the 57 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including professional charges.
Ms Y Evans purchased a first floor apartment in Hollywood in April 2012. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Identical premises in Hollywood with a long lease were worth £245,000. The average amount of ground rent was £50 collected yearly. The lease came to a finish on 20 January 2094. Given that there were 68 years remaining we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.