The re-sale value of a leasehold property in Holywell is impacted by how long the lease has remaining. If it is close to or fewer than 80 years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be finalised in advance of the eighty year mark. Statute entitles Holywell qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of ninety years. The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Holywell with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Coventry Building Society | |
| The Mortgage Works |
The conveyancers that we work with undertake Holywell lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Edward owned a 2 bedroom flat in Holywell on the market with a lease of a little over sixty years outstanding. Edward on an informal basis contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Edward to exercise his statutory right. Edward procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. T Hill owned a one bedroom apartment in Holywell in July 2001. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by 90 years. Comparative premises in Holywell with a long lease were valued around £208,600. The average amount of ground rent was £60 invoiced monthly. The lease elapsed in 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 legals.
In 2014 we were called by Mr and Mrs. R Lefebvre who, having was assigned a lease of a first floor apartment in Holywell in May 2009. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Holywell with a long lease were in the region of £200,000. The average amount of ground rent was £50 billed quarterly. The lease lapsed on 17 November 2103. Having 77 years remaining we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including fees.