When it comes to long leasehold property in Holmrook, you are in fact renting it for a certain period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly when there are less than eighty years left. Anyone in Holmrook with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has below eighty years outstanding, under the relevant legislation the landlord can calculate and charge a greater premium, based on a technical computation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
Regardless of whether you are a tenant or a landlord in Holmrook,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Holmrook valuers.
Liam owned a high value apartment in Holmrook on the market with a lease of fraction over fifty eight years left. Liam informally approached his freeholder being a well known local-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Liam to exercise his statutory right. Liam procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Last Summer we were contacted by Mr and Mrs. B Johnson , who bought a one bedroom apartment in Holmrook in June 1997. The question was if we could approximate the price would be to prolong the lease by an additional years. Identical residencies in Holmrook with 100 year plus lease were valued around £290,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease end date was in 2097. Given that there were 72 years outstanding we estimated the compensation to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of expenses.
Mr E Campbell purchased a recently refurbished apartment in Holmrook in May 2006. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparative premises in Holmrook with 100 year plus lease were worth £233,200. The mid-range amount of ground rent was £60 collected annually. The lease elapsed on 24 October 2086. Given that there were 61 years remaining we estimated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 plus costs.