Holsworthy leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Holsworthy tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Holsworthy you would be well advised to investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Halifax | |
| Nationwide Building Society | |
| Royal Bank of Scotland |
Irrespective of whether you are a tenant or a landlord in Holsworthy,the lease extension lawyers 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.
Last October Jacob, came seriously near to the eighty-year mark with the lease on his one bedroom flat in Holsworthy. Having purchased his property twenty years previously, the unexpired term was of little interest. Thankfully, he noticed he needed to take action soon on Extending the lease. Jacob was able to extend his lease just under the wire last January. Jacob and the freeholder via the managing agents eventually agreed on a premium of £5,000 . If he not met the deadline, the price would have increased by at least £1,000.
Last Spring we were e-mailed by Mr I Moore , who owned a one bedroom flat in Holsworthy in June 2003. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparable homes in Holsworthy with a long lease were valued about £285,000. The mid-range amount of ground rent was £55 invoiced per annum. The lease came to a finish on 2 September 2106. Taking into account 80 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including expenses.
Last November we were phoned by Dr R Cooper , who completed a newly refurbished flat in Holsworthy in August 2011. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable homes in Holsworthy with an extended lease were valued about £198,400. The average ground rent payable was £65 billed annually. The lease ran out in 2085. Considering the 59 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 exclusive of fees.