On the balance of probabilities where you own a flat in Holt you actually own a long leasehold interest over your property
Leasehold properties in Holt with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you increased control over the value of your Holt leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Oliver was the the leasehold owner of a high value flat in Holt on the market with a lease of a few days over 72 years remaining. Oliver on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Oliver to exercise his statutory right. Oliver procured expert advice and was able to make an informed judgement and deal with the matter and sell the property.
Last Summer we were contacted by Mr James King , who acquired a garden apartment in Holt in May 2008. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Identical flats in Holt with 100 year plus lease were valued about £208,200. The mid-range ground rent payable was £65 invoiced quarterly. The lease ended on 7 January 2087. Having 61 years outstanding we estimated the premium to the landlord for the lease extension to be between £20,000 and £23,000 not including professional charges.
In 2014 we were phoned by Mr and Mrs. H Bennett who, having purchased a one bedroom apartment in Holt in May 1997. We are asked if we could approximate the premium would be to prolong the lease by a further 90 years. Similar homes in Holt with a long lease were in the region of £260,000. The average ground rent payable was £50 invoiced annually. The lease termination date was in 2098. Having 72 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of expenses.