The market value of a leasehold property in Holmrook is impacted by how long the lease has left to run. If it is near to or less than eighty years you should envisage difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when a lease still has 82 years unexpired so that formalities can be addressed ahead of the eighty year mark. Current legislation enables Holmrook qualifying lessees to an additional term of 90 years in addition to the remaining term, at a notional rent (zero ground rent). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you better control over the value of your Holmrook leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Benjamin was the the leasehold owner of a high value apartment in Holmrook being marketed with a lease of a few days over 59 years unexpired. Benjamin on an informal basis spoke with his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Benjamin to exercise his statutory right. Benjamin procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Last month we were called by Dr Grace Wilson , who took over the lease of a ground floor apartment in Holmrook in July 2012. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Identical residencies in Holmrook with a long lease were valued around £285,000. The average amount of ground rent was £45 billed monthly. The lease finished on 17 October 2097. Having 71 years outstanding we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including professional charges.
Last Spring we were approach by Mrs S Scott , who owned a one bedroom flat in Holmrook in February 2002. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparative premises in Holmrook with 100 year plus lease were in the region of £230,800. The average amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2086. Having 60 years remaining we estimated the compensation to the freeholder for the lease extension to be within £24,700 and £28,600 exclusive of professional charges.