Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Holsworthy. Inevitably, the period of lease remaining shortens as time goes by. This may pass by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to obtain a lease extension. Eligible long lease owners in Holsworthy have the right to extend the lease for an additional ninety years under statute. Please give careful attention before delaying your Holsworthy lease extension. Holding off the cost now only increases the price you will eventually incur to extend your lease
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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. |
Irrespective of whether you are a tenant or a landlord 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 in-depth market knowledge and the close ties they enjoy with Holsworthy valuers.
William was the the leasehold owner of a conversion flat in Holsworthy being sold with a lease of a little over 72 years outstanding. William informally contacted his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were William to invoke his statutory right. William obtained expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. S Peterson moved into a purpose-built flat in Holsworthy in November 1995. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Comparable residencies in Holsworthy with a long lease were valued about £235,200. The mid-range ground rent payable was £45 collected quarterly. The lease ran out on 14 March 2092. Given that there were 66 years unexpired we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 not including legals.
In 2014 we were phoned by Mr and Mrs. K Gray who, having owned a one bedroom flat in Holsworthy in August 2003. The question was if we could estimate the premium could be for a ninety year lease extension. Similar homes in Holsworthy with 100 year plus lease were valued around £275,000. The average ground rent payable was £55 invoiced per annum. The lease finished in 2103. Taking into account 77 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus expenses.