With a residential leasehold property in Holmrook, you are actually buying an entitlement to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately more expensive particularly when there are less than 80 years remaining. Leasehold owners in Holmrook with a lease drawing near to 81 years remaining should seriously think of extending it sooner as opposed to later. When a lease has under 80 years outstanding, under the relevant Act the freeholder is entitled to calculate and charge a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
Retaining our service gives you enhanced control over the value of your Holmrook leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last Christmas Harrison, started to get close to the 80-year threshold with the lease on his one bedroom flat in Holmrook. Having bought his home two decades ago, the unexpired term was of little interest. Luckily, it dawned on him that he would imminently be paying way over the odds for a lease extension. Harrison was able to extend his lease just under the wire last July. Harrison and the freeholder eventually agreed on an amount of £5,000 . If the lease had descended below eighty years, the figure would have become more costly by at least £975.
Dr Zachary Murphy purchased a garden flat in Holmrook in January 1998. The dilemma was if we could estimate the price could be to prolong the lease by ninety years. Comparative premises in Holmrook with a long lease were worth £267,600. The mid-range ground rent payable was £65 collected annually. The lease ended in 2091. Considering the 67 years as a residual term we estimated the premium to the landlord for the lease extension to be within £14,300 and £16,400 plus expenses.
Last Autumn we were phoned by Dr L Nguyen , who moved into a first floor apartment in Holmrook in September 2009. The question was if we could approximate the price would likely be for a 90 year extension to my lease. Identical residencies in Holmrook with an extended lease were in the region of £206,200. The mid-range amount of ground rent was £60 invoiced annually. The lease ended on 6 November 2080. Taking into account 56 years left we calculated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 plus fees.