For those whose Holton le Clay property is held on a long lease, our message is clear – if you ignore the situation, the property will ultimately revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to obtain a lease extension.
Leasehold residencies in Holton le Clay with more than 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth 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 justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| Leeds Building Society | |
| Santander |
The lawyers that we work with handle Holton le Clay lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Luca owned a studio flat in Holton le Clay on the market with a lease of just over fifty eight years outstanding. Luca on an informal basis approached his landlord a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Luca to exercise his statutory right. Luca obtained expert advice and secured satisfactory resolution informally and sell the flat.
In 2010 we were called by Mr and Mrs. C Morgan who, having bought a studio flat in Holton le Clay in April 2000. The question was if we could estimate the price would likely be for a ninety year extension to my lease. Comparative residencies in Holton le Clay with 100 year plus lease were valued about £208,600. The average ground rent payable was £60 billed annually. The lease finished on 19 January 2083. Taking into account 57 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus costs.
In 2010 we were approached by Ms Alicia Davies who, having completed a one bedroom apartment in Holton le Clay in September 2008. The question was if we could estimate the premium would likely be to extend the lease by 90 years. Comparable properties in Holton le Clay with a long lease were in the region of £200,000. The average amount of ground rent was £50 billed monthly. The lease lapsed in 2103. Given that there were 77 years outstanding we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of fees.