Holsworthy leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. The majority of owners of residential leasehold property in Holsworthy enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Holsworthy you really ought to check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value
Leasehold premises in Holsworthy with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Holsworthy,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Holsworthy valuers.
Benjamin was the the leasehold proprietor of a high value apartment in Holsworthy being sold with a lease of fraction over 72 years outstanding. Benjamin informally contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Benjamin to invoke his statutory right. Benjamin procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
In 2013 we were e-mailed by Dr Alisha Gray who, having moved into a basement flat in Holsworthy in September 2006. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Identical flats in Holsworthy with a long lease were valued around £245,000. The average ground rent payable was £45 billed every twelve months. The lease lapsed in 2094. Considering the 68 years unexpired we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of fees.
Mrs Tia Nelson acquired a purpose-built flat in Holsworthy in May 1995. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable homes in Holsworthy with an extended lease were valued about £280,000. The mid-range amount of ground rent was £55 invoiced annually. The lease concluded on 2 June 2104. Having 78 years outstanding we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of expenses.