Holmes Chapel leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Holmes Chapel residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Holmes Chapel you must check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the premium due on any lease extension sharply increases as an element of the premium you will incur is what is known as a marriage value
Leasehold residencies in Holmes Chapel with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘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 buying the reversionary interest unless savings on ground rent and estate charges merit 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 better control over the value of your Holmes Chapel leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted negotiations with the landlord of her one bedroom flat in Holmes Chapel, Molly started the lease extension process just as her lease was coming close to the critical 80-year deadline. The transaction was finalised in October 2009. The landlord’s charges were kept to an absolute minimum.
In 2009 we were approached by Mr and Mrs. S Rodríguez who, having completed a ground floor apartment in Holmes Chapel in May 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Holmes Chapel with 100 year plus lease were worth £184,000. The average ground rent payable was £55 collected quarterly. The lease came to a finish on 28 October 2079. Having 53 years left we calculated the premium to the landlord to extend the lease to be within £28,500 and £33,000 exclusive of costs.
Mr and Mrs. B Bertrand owned a garden apartment in Holmes Chapel in November 1998. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Similar properties in Holmes Chapel with 100 year plus lease were in the region of £290,000. The average ground rent payable was £45 invoiced monthly. The lease came to a finish in 2099. Having 73 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.