It’s a harsh certainty that a Holt residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Holt property market.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be due. Most leasehold owners in Holt will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the process.
Leasehold premises in Holt with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Regardless of whether you are a tenant or a landlord in Holt,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Holt valuers.
Trailing unsuccessful negotiations with the freeholder of her leasehold apartment in Holt, Jodie started the lease extension process as the eighty year deadline was rapidly approaching. The legal work was concluded in July 2014. The freeholder’s fees were kept to an absolute minimum.
In 2009 we were contacted by Mr and Mrs. J Mitchell who, having acquired a ground floor flat in Holt in June 1999. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical residencies in Holt with a long lease were in the region of £255,000. The average amount of ground rent was £50 invoiced monthly. The lease concluded on 23 January 2096. Taking into account 71 years left we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.
In 2009 we were approached by Dr Mollie Parker who, having owned a ground floor apartment in Holt in August 2003. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Holt with 100 year plus lease were worth £254,200. The average amount of ground rent was £60 invoiced every twelve months. The lease terminated in 2076. Having 51 years left we calculated the compensation to the landlord to extend the lease to be between £43,700 and £50,600 exclusive of fees.