Holmes Chapel leases on residential deteriorating in value. if your lease has in the region of 90 years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher amount will be due. Leasehold owners in Holmes Chapel will mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and procedures to comply with once the process has started so it’s wise to be guided by a conveyancer during the process.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancers that we work with procure Holmes Chapel 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 unsuccessful negotiations with the freeholder of her first floor flat in Holmes Chapel, Lily commenced the lease extension process just as the lease was coming close to the crucial 80-year threshold. The lease extension completed in July 2013. The landlord’s costs were kept to an absolute minimum.
Last August we were approach by Mr and Mrs. D Vincent , who owned a first floor flat in Holmes Chapel in May 2005. The question was if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Identical properties in Holmes Chapel with 100 year plus lease were valued around £243,000. The average ground rent payable was £65 invoiced every twelve months. The lease finished in 2088. Taking into account 63 years left we calculated the premium to the landlord for the lease extension to be within £20,000 and £23,000 plus costs.
Ms Natasha Sharif acquired a first floor apartment in Holmes Chapel in August 2001. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Comparative residencies in Holmes Chapel with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced yearly. The lease concluded on 11 June 2077. Taking into account 52 years unexpired we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 plus costs.