Unfortunately that a Holmrook residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Holmrook property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term drops below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Holmrook will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Holmrook with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you better control over the value of your Holmrook leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Samuel owned a studio apartment in Holmrook being sold with a lease of fraction over sixty years remaining. Samuel informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be payable on a lease extension were Samuel to exercise his statutory right. Samuel obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the flat.
In 2011 we were e-mailed by Mr Reuben Roux who, having purchased a recently refurbished apartment in Holmrook in August 2005. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Identical homes in Holmrook with an extended lease were valued about £200,000. The average amount of ground rent was £50 billed every twelve months. The lease expiry date was in 2103. Given that there were 77 years left we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.
Mr and Mrs. W Murphy purchased a studio apartment in Holmrook in July 2000. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Identical residencies in Holmrook with an extended lease were in the region of £265,200. The mid-range ground rent payable was £65 billed quarterly. The lease ran out in 2092. Given that there were 66 years remaining we calculated the compensation to the landlord for the lease extension to be between £15,200 and £17,600 exclusive of expenses.