Holmes Chapel leases on domestic deteriorating in value. Where your lease has about 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Holmes Chapel will usually be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some cases you may not qualify. There are prescribed timetables and steps to comply with once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Using our service gives you better control over the value of your Holmes Chapel leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jackson owned a high value flat in Holmes Chapel on the market with a lease of a few days over 61 years unexpired. Jackson on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be due on a lease extension were Jackson to invoke his statutory right. Jackson procured expert advice and was able to make an informed judgement and deal with the matter and sell the flat.
Mr D Harris bought a ground floor apartment in Holmes Chapel in January 2002. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative premises in Holmes Chapel with 100 year plus lease were valued around £205,000. The mid-range amount of ground rent was £50 billed quarterly. The lease expired in 2104. Considering the 79 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.
In 2011 we were contacted by Dr K Jones who, having completed a purpose-built apartment in Holmes Chapel in July 2004. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparable homes in Holmes Chapel with a long lease were valued around £275,000. The average amount of ground rent was £65 invoiced monthly. The lease lapsed in 2093. Considering the 68 years outstanding we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of professional charges.