Unfortunately that a Holyhead residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Holyhead property prices.Once your lease gets to 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Holyhead will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the process.
Leasehold properties in Holyhead with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| National Westminster Bank | |
| TSB | |
| The Mortgage Works | |
| Virgin |
Engaging our service gives you increased control over the value of your Holyhead leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of lengthy correspondence with the landlord of her first floor flat in Holyhead, Madeleine started the lease extension process as the 80 year threshold was fast coming. The legal work was concluded in November 2007. The landlord’s fees were restricted to a tad over six hundred GBP.
Last Summer we were called by Mrs B Anderson , who completed a studio apartment in Holyhead in January 2000. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Similar properties in Holyhead with 100 year plus lease were worth £275,000. The average ground rent payable was £65 billed yearly. The lease termination date was on 19 July 2094. Taking into account 68 years outstanding we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 not including professional charges.
In 2014 we were phoned by Mrs O Lewis who, having moved into a ground floor flat in Holyhead in October 1997. We are asked if we could estimate the price would be to prolong the lease by an additional years. Comparable premises in Holyhead with a long lease were valued about £208,600. The average amount of ground rent was £60 collected annually. The lease concluded on 11 February 2083. Taking into account 57 years remaining we estimated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus costs.