Holton le Clay leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Most owners of residential leasehold property in Holton le Clay enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Holton le Clay you really ought to check if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Holton le Clay,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 Holton le Clay valuers.
Hunter owned a 2 bedroom apartment in Holton le Clay being sold with a lease of fraction over 72 years unexpired. Hunter on an informal basis contacted his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Hunter to exercise his statutory right. Hunter procured expert legal guidance and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
Last February we were contacted by Dr H López , who took over the lease of a ground floor apartment in Holton le Clay in October 1999. The question was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Identical premises in Holton le Clay with an extended lease were worth £285,000. The average amount of ground rent was £45 invoiced per annum. The lease expired on 20 October 2096. Having 71 years remaining we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.
Ms F Thomas acquired a newly refurbished flat in Holton le Clay in August 1998. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Holton le Clay with an extended lease were worth £225,800. The average ground rent payable was £60 collected yearly. The lease lapsed on 4 June 2085. Given that there were 60 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £24,700 and £28,600 plus legals.