The only way is down when it comes to Holywell lease terms. Holywell flats that have a remaining term fewer than 80 years will de-escalate in value even faster, and the cost to extend your lease will rise.
Leasehold residencies in Holywell with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | 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 also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service gives you better control over the value of your Holywell leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Harvey, came dangerously close to the 80-year mark with the lease on his basement apartment in Holywell. In buying his home 18 years previously, the length of the lease was of little relevance. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Harvey arranged for a lease extension at the eleventh hour in May. Harvey and the freeholder eventually agreed on an amount of £5,500 . If the lease had dipped below 80 years, the premium would have escalated by a minimum £1,150.
Dr P André purchased a newly refurbished apartment in Holywell in February 2005. The question was if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparative properties in Holywell with 100 year plus lease were worth £285,000. The average ground rent payable was £45 billed quarterly. The lease concluded on 4 June 2096. Taking into account 71 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 not including legals.
Last Christmas we were contacted by Dr J Thompson , who took over the lease of a ground floor apartment in Holywell in February 2000. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by ninety years. Identical flats in Holywell with an extended lease were worth £225,800. The mid-range ground rent payable was £60 billed quarterly. The lease finished on 6 July 2085. Having 60 years unexpired we calculated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 not including professional charges.