Holton le Clay leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Holton le Clay residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Holton le Clay you should see if your lease has between 70 and 90 years left. There are good reasons why a Holton le Clay leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
It is generally accepted that a property with more than one hundred years remaining is worth approximately the same as a freehold. Where an additional 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 |
|---|---|
| Accord Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Holton le Clay can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor with experience in this area.
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 a wealth of experience procuring Holton le Clay lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Henry, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Holton le Clay. Having bought his property 18 years ago, the lease term was of minimal concern. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Henry was able to extend his lease just under the wire in August. Henry and the landlord who owned the flat above ultimately agreed on an amount of £6,000 . If he had missed the deadline, the figure would have become more costly by a minimum £1,050.
In 2012 we were e-mailed by Mr and Mrs. K Nelson who, having owned a studio flat in Holton le Clay in January 2011. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable residencies in Holton le Clay with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 billed monthly. The lease terminated on 22 July 2078. Having 52 years remaining we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including expenses.
Last Spring we were e-mailed by Dr E Carter , who completed a first floor flat in Holton le Clay in September 1996. The question was if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical homes in Holton le Clay with a long lease were in the region of £290,000. The average ground rent payable was £45 collected annually. The lease terminated on 26 October 2098. Considering the 72 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 plus costs.