Holt leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Holt will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to check your eligibility. In some situations you may not be entitled. There are prescribed deadlines and formalities to follow once the process is initiated so it’s sensible to be guided by a conveyancing solicitor during the process.
Leasehold properties in Holt with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Birmingham Midshires | 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. |
| 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. |
Lease extensions in Holt can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Holt lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy discussions with the freeholder of her purpose-built flat in Holt, Madeleine commenced the lease extension process as the 80 year threshold was fast approaching. The lease extension was concluded in January 2009. The landlord’s charges were kept to an absolute minimum.
In 2010 we were contacted by Mr and Mrs. G David who, having purchased a garden flat in Holt in October 1998. The question was if we could approximate the premium would be to prolong the lease by a further 90 years. Identical residencies in Holt with 100 year plus lease were valued around £193,400. The mid-range amount of ground rent was £65 collected per annum. The lease finished in 2084. Having 59 years outstanding we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus expenses.
In 2012 we were called by Ms U Howard who, having completed a basement flat in Holt in June 2005. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Holt with an extended lease were valued around £255,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease ran out in 2095. Given that there were 70 years left we estimated the premium to the landlord to extend the lease to be between £10,500 and £12,000 not including fees.