The only way is down when it comes to Holywell lease terms. Holywell flats that have a residual term lower than 80 years will reduce in market price even faster, and the cost to extend your lease will rise.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Holywell,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Holywell valuers.
Evan was the the leasehold owner of a conversion apartment in Holywell on the market with a lease of a few days over 72 years left. Evan informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Evan to exercise his statutory right. Evan procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
Mr and Mrs. G Michel was assigned a lease of a garden apartment in Holywell in September 1996. The question was if we could approximate the premium would likely be for a 90 year lease extension. Comparative homes in Holywell with a long lease were worth £223,400. The mid-range amount of ground rent was £60 invoiced per annum. The lease terminated on 8 October 2084. Taking into account 59 years unexpired we approximated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 plus fees.
Mr N Martin purchased a basement flat in Holywell in May 2002. The question was if we could estimate the price would likely be to extend the lease by 90 years. Similar homes in Holywell with 100 year plus lease were worth £205,000. The average amount of ground rent was £50 collected yearly. The lease ran out in 2104. Considering the 79 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including expenses.