The re-sale value of a leasehold property in Holmrook is impacted by how long the lease has left to run. If it is close to or fewer than eighty years you should expect problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. 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 in advance of the 80 year threshold. Statute entitles Holmrook qualifying lessees to a 90 year extension added to their unexpired lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Holmrook with more than 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Holmrook can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Holmrook lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Riley, came seriously close to the 80-year threshold with the lease on his basement apartment in Holmrook. Having bought his property twenty years previously, the unexpired term was of little significance. Luckily, he noticed he would imminently be paying an escalated premium for Extending the lease. Riley extended the lease just under the wire in July. Riley and the freeholder in the end settled on the final figure of £5,000 . If the lease had fallen lower than 80 years, the figure would have escalated by a minimum £1,150.
Last Spring we were approach by Mr and Mrs. R Leroy , who acquired a first floor apartment in Holmrook in March 2010. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Similar premises in Holmrook with 100 year plus lease were in the region of £213,600. The mid-range ground rent payable was £60 collected yearly. The lease ended in 2083. Considering the 57 years left we estimated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including fees.
Last year we were e-mailed by Mr and Mrs. C Bell , who bought a garden flat in Holmrook in August 2009. The question was if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Similar premises in Holmrook with 100 year plus lease were worth £200,000. The average amount of ground rent was £50 collected yearly. The lease ran out on 20 August 2103. Having 77 years remaining we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus costs.