Unfortunately that a Holmrook residential lease is a wasting 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 Holmrook property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If the number of years remaining dips under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Holmrook will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your lawyer throughout the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Godiva Mortgages | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Holmrook,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 Holmrook valuers.
Last year Elijah, came precariously near to the 80-year threshold with the lease on his two bedroom apartment in Holmrook. In buying his home two decades ago, the lease term was of little relevance. Thankfully, he realised he needed to take action soon on Extending the lease. Elijah was able to extend his lease just in the nick of time in September. Elijah and the landlord who owned the flat above ultimately settled on sum of £5,500 . If he had missed the deadline, the premium would have become more costly by at least £975.
Mr and Mrs. M Green owned a studio apartment in Holmrook in March 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by a further 90 years. Comparative residencies in Holmrook with a long lease were valued around £240,600. The mid-range ground rent payable was £65 collected per annum. The lease concluded on 25 June 2088. Having 62 years unexpired we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including expenses.
Last Spring we were called by Dr G Petit , who acquired a ground floor apartment in Holmrook in September 2003. We are asked if we could approximate the price could be for a 90 year lease extension. Similar flats in Holmrook with an extended lease were in the region of £179,200. The average ground rent payable was £55 invoiced every twelve months. The lease expired in 2077. Considering the 51 years left we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus fees.