Unfortunately that a Holyhead residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the reduction being disguised by increases in the Holyhead property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. If the number of years remaining dips under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property Most leasehold owners in Holyhead will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the formalities.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Holyhead can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor with experience in lease extensions.
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 dealing with Holyhead lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Owen owned a 2 bedroom apartment in Holyhead on the market with a lease of just over 59 years left. Owen on an informal basis approached his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Owen to invoke his statutory right. Owen procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
In 2012 we were approached by Mr and Mrs. J Bailey who, having was assigned a lease of a basement flat in Holyhead in September 2003. We are asked if we could approximate the price would likely be to extend the lease by 90 years. Identical properties in Holyhead with 100 year plus lease were valued about £243,000. The mid-range ground rent payable was £65 collected every twelve months. The lease came to a finish on 20 January 2089. Having 63 years remaining we estimated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of legals.
Dr Ethan White owned a basement flat in Holyhead in September 2003. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Identical homes in Holyhead with 100 year plus lease were worth £181,600. The mid-range amount of ground rent was £55 invoiced per annum. The lease concluded in 2078. Having 52 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus expenses.