Holborn leases on domestic deteriorating in value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for a lease extension to be in place before the term of the existing lease dips below eighty years - otherwise a higher amount will be due. Flat owners in Holborn will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In certain situations you may not be entitled. There are prescribed timetables and formalities to follow once the process is initiated so it’s wise to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Using our service will provide you better control over the value of your Holborn leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago John, came dangerously close to the eighty-year mark with the lease on his ground floor apartment in Holborn. Having purchased his home twenty years ago, the unexpired term was of no interest. Luckily, it dawned on him that he would imminently be paying an escalated premium for a lease extension. John arranged for a lease extension at the eleventh hour last May. John and the landlord who owned the flat above in the end settled on an amount of £6,000 . If he not met the deadline, the sum would have gone up by at least £1,100.
Last Winter we were approach by Mr and Mrs. S Rogers , who purchased a basement flat in Holborn in August 2001. We are asked if we could estimate the premium would be for a 90 year extension to my lease. Similar properties in Holborn with an extended lease were worth £198,800. The average ground rent payable was £55 billed quarterly. The lease expired in 2081. Taking into account 55 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 exclusive of costs.
An example of a Lease Extension case for a Holborn flat is Flat 89 Trinity Court Grays Inn Road in February 2013. the Tribunal found that the premium to be paid by the tenant on the grant of a new lease, in accordance with section 56 and Schedule 13 to the Leasehold Reform, Housing and Urban Development Act 1993 should be £36,229. This case was in relation to 1 flat. The remaining number of years on the lease was 66.8 years.