When it comes to long leasehold property in Holmes Chapel, you are in fact renting it for a certain amount of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately greater particularly once there are fewer than 80 years left. Leasehold owners in Holmes Chapel with a lease nearing 81 years remaining should seriously consider extending it without delay. When the lease term has less than eighty years remaining, under the current legislation the landlord is entitled to calculate and levy a greater premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Godiva Mortgages | |
| Skipton Building Society | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
The conveyancing solicitors 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 conveyancing solicitor we work with provide it.
Kian was the the leasehold proprietor of a 2 bedroom apartment in Holmes Chapel being marketed with a lease of a few days over 59 years outstanding. Kian on an informal basis contacted his freeholder being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kian to invoke his statutory right. Kian obtained expert advice and secured satisfactory deal informally and readily saleable.
In 2010 we were e-mailed by Mr David Lee who, having took over the lease of a recently refurbished apartment in Holmes Chapel in October 1997. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparative properties in Holmes Chapel with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 collected per annum. The lease ended on 25 September 2103. Considering the 77 years remaining we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including professional charges.
Mr and Mrs. D Wright acquired a recently refurbished flat in Holmes Chapel in June 2012. We are asked if we could estimate the price would be to extend the lease by a further 90 years. Similar homes in Holmes Chapel with 100 year plus lease were worth £260,200. The average amount of ground rent was £65 invoiced annually. The lease elapsed on 6 January 2092. Taking into account 66 years remaining we calculated the premium to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of fees.