The re-sale value of a leasehold property in Holmrook is impacted by how long the lease has remaining. If it is close to or fewer than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that all matters can be concluded ahead of the eighty year threshold. Current legislation enables Holmrook qualifying lessees to acquire a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years unexpired, the residence 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Holmrook,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Holmrook valuers.
Following unsuccessful discussions with the landlord of her two bedroom flat in Holmrook, Kelsey started the lease extension process as the 80 year mark was swiftly coming. The transaction was finalised in October 2012. The freeholder’s charges were kept to an absolute minimum.
In 2010 we were phoned by Mr Lucas Hernández who, having was assigned a lease of a one bedroom flat in Holmrook in May 1999. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparative premises in Holmrook with a long lease were worth £267,600. The average amount of ground rent was £65 collected every twelve months. The lease end date was on 18 July 2093. Having 67 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £14,300 and £16,400 not including fees.
In 2014 we were e-mailed by Mrs P Gray who, having took over the lease of a purpose-built flat in Holmrook in March 1997. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical premises in Holmrook with an extended lease were valued about £206,200. The average amount of ground rent was £60 invoiced annually. The lease concluded in 2082. Taking into account 56 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £32,300 and £37,400 exclusive of costs.