Unfortunately that a Holmes Chapel residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Holmes Chapel property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips lower than eighty years - otherwise a higher amount will be payable. Most leasehold owners in Holmes Chapel will be able to extend under the legislation; however a lawyer should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold premises in Holmes Chapel with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Holmes Chapel,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Holmes Chapel valuers.
George owned a studio flat in Holmes Chapel on the market with a lease of a little over 61 years unexpired. George informally approached his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were George to exercise his statutory right. George obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and ending up with a market value flat.
In 2014 we were e-mailed by Mr and Mrs. N Clark who, having owned a recently refurbished flat in Holmes Chapel in January 2008. The question was if we could approximate the premium would likely be to prolong the lease by 90 years. Similar homes in Holmes Chapel with a long lease were worth £257,800. The average ground rent payable was £65 billed every twelve months. The lease finished on 18 June 2091. Given that there were 65 years unexpired we calculated the premium to the freeholder to extend the lease to be between £18,100 and £20,800 exclusive of expenses.
Mr P López took over the lease of a purpose-built apartment in Holmes Chapel in September 1996. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Comparative flats in Holmes Chapel with 100 year plus lease were in the region of £191,400. The average amount of ground rent was £55 invoiced quarterly. The lease terminated in 2080. Having 54 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of expenses.