With a domestic leasehold property in Holmes Chapel, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive especially once there are fewer than 80 years left. Residents in Holmes Chapel with a lease nearing 81 years left should seriously consider extending it as soon as possible. Once the lease term has less than 80 years outstanding, under the relevant statute the freeholder can calculate and levy a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is generally considered that a property with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| 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 gives you better control over the value of your Holmes Chapel leasehold, as your property will be more valuable and saleable in respect 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.
Daniel owned a 2 bedroom apartment in Holmes Chapel on the market with a lease of a little over 61 years outstanding. Daniel informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Daniel to exercise his statutory right. Daniel procured expert legal guidance and secured satisfactory deal without going to tribunal and sell the flat.
In 2012 we were phoned by Mr and Mrs. D Rivera who, having purchased a one bedroom flat in Holmes Chapel in June 2001. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by an additional years. Comparative flats in Holmes Chapel with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £45 invoiced every twelve months. The lease finished in 2098. Having 72 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus legals.
Last Christmas we were called by Dr N Martínez , who completed a ground floor apartment in Holmes Chapel in May 2000. The question was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative residencies in Holmes Chapel with a long lease were valued around £233,200. The mid-range amount of ground rent was £60 collected per annum. The lease lapsed on 24 February 2087. Given that there were 61 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £22,800 and £26,400 plus fees.