It’s a harsh certainty that a Holt residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Holt property market.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term dips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Holt will be able to extend under the legislation; however a conveyancer should be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 Holt,the lease extension experts 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.
Michael was the the leasehold proprietor of a conversion flat in Holt being marketed with a lease of a little over sixty years outstanding. Michael on an informal basis contacted his landlord a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be due on a lease extension were Michael to invoke his statutory right. Michael procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
Dr H Bernard owned a one bedroom apartment in Holt in November 2003. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Similar properties in Holt with an extended lease were valued around £176,200. The average ground rent payable was £65 collected per annum. The lease finished on 19 October 2082. Taking into account 56 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 plus expenses.
Dr N Nelson was assigned a lease of a newly refurbished flat in Holt in October 2003. The dilemma was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative homes in Holt with a long lease were worth £242,600. The mid-range amount of ground rent was £45 invoiced yearly. The lease terminated in 2093. Having 67 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 exclusive of fees.