Holme On Spalding Moor leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Holme On Spalding Moor enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Holme On Spalding Moor you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Holme On Spalding Moor with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancing solicitors that we work with procure Holme On Spalding Moor 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.
Subsequent to lengthy negotiations with the landlord of her one bedroom apartment in Holme On Spalding Moor, Rachel commenced the lease extension process as the 80 year mark was fast coming. The lease extension was concluded in November 2009. The landlord’s fees were restricted to below 650 pounds.
Ms Elizabeth Lewis completed a one bedroom flat in Holme On Spalding Moor in June 2005. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparative properties in Holme On Spalding Moor with an extended lease were worth £285,000. The mid-range ground rent payable was £45 billed monthly. The lease termination date was in 2096. Having 71 years outstanding we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.
Dr Oscar Davies purchased a purpose-built flat in Holme On Spalding Moor in June 2005. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in Holme On Spalding Moor with an extended lease were valued around £225,800. The mid-range amount of ground rent was £60 collected quarterly. The lease concluded in 2085. Having 60 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £25,700 and £29,600 not including fees.