Holmrook leases on domestic properties are gradually losing value. if your lease has about ninety years left, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to your landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Holmrook will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain situations you may not qualify. There are prescribed deadlines and steps to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Engaging our service gives you enhanced control over the value of your Holmrook leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months James, came very close to the 80-year mark with the lease on his leasehold flat in Holmrook. In buying his property two decades ago, the unexpired term was of minimal importance. by good luck, he noticed he would soon be paying an escalated premium for a lease extension. James extended the lease just under the wire last May. James and the freeholder in the end settled on the final figure of £5,000 . If the lease had slid below 80 years, the premium would have gone up by a minimum £950.
Mr U James moved into a purpose-built apartment in Holmrook in November 1998. The question was if we could approximate the premium could be for a ninety year lease extension. Identical homes in Holmrook with a long lease were in the region of £240,600. The mid-range ground rent payable was £60 invoiced per annum. The lease terminated on 5 August 2085. Having 62 years as a residual term we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 not including costs.
Last Christmas we were contacted by Mrs I López , who took over the lease of a newly refurbished flat in Holmrook in March 1997. The dilemma was if we could estimate the price would be to extend the lease by ninety years. Comparable homes in Holmrook with a long lease were in the region of £174,200. The mid-range amount of ground rent was £55 billed per annum. The lease ran out in 2074. Having 51 years left we estimated the compensation to the landlord for the lease extension to be between £31,400 and £36,200 exclusive of legals.