The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Hollywood can extend the lease for a further 90 years under legislation. Please think carefully before delaying your Hollywood lease extension. Shelving the costs now simply increases the price you will ultimately have to pay for a lease extension.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years left, the property 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
The lawyers that we work with handle Hollywood 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 conveyancer we work with provide it.
18 months ago Gabriel, came precariously near to the 80-year threshold with the lease on his leasehold flat in Hollywood. In buying his flat twenty years ago, the lease term was of minimal interest. Thankfully, he noticed he needed to take action soon on Extending the lease. Gabriel extended the lease just under the wire last May. Gabriel and the landlord ultimately settled on the final figure of £5,000 . If the lease had dropped lower than 80 years, the premium would have increased by at least £1,125.
In 2013 we were phoned by Mr Lucas Rodríguez who, having completed a first floor apartment in Hollywood in July 2003. The question was if we could estimate the price could be to extend the lease by ninety years. Comparable flats in Hollywood with a long lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed quarterly. The lease came to a finish in 2095. Considering the 69 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including fees.
Mrs Isabel Garcia bought a studio apartment in Hollywood in August 2010. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Comparable properties in Hollywood with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £55 collected every twelve months. The lease ended on 14 January 2106. Considering the 80 years outstanding we approximated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus legals.