There is no doubt about it a leasehold flat or house in Holyhead is a wasting asset as a result of the diminishing lease term. Where the lease has, over 100 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main reason why you should consider extending without delay. The majority of flat owners in Holyhead will meet the qualifying criteria; however a conveyancer should be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service gives you better control over the value of your Holyhead leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Henry was the the leasehold proprietor of a high value flat in Holyhead on the market with a lease of fraction over 59 years outstanding. Henry informally contacted his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Henry to exercise his statutory right. Henry obtained expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
Mrs Chantelle Watson moved into a one bedroom flat in Holyhead in January 1996. The question was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable flats in Holyhead with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed monthly. The lease ended in 2106. Given that there were 80 years remaining we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 exclusive of legals.
Last year we were e-mailed by Mr L Smith , who took over the lease of a studio apartment in Holyhead in August 2012. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparative properties in Holyhead with a long lease were worth £275,000. The average amount of ground rent was £45 collected annually. The lease concluded in 2095. Taking into account 69 years outstanding we calculated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.