With a long leasehold premises in Holborn, you are actually purchasing a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are fewer than 80 years remaining. Leasehold owners in Holborn with a lease nearing 81 years remaining should seriously think of extending it sooner than later. Once the lease term has below eighty years left, under the current statute the freeholder is entitled to calculate and demand a larger premium, assessed on a technical multiplication, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Birmingham Midshires | |
| Santander | |
| Virgin | |
| Yorkshire Building Society |
Regardless of whether you are a tenant or a landlord in Holborn,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Holborn valuers.
In 2014 Jacob, started to get close to the 80-year threshold with the lease on his studio flat in Holborn. In buying his flat 18 years ago, the length of the lease was of little bearing. As luck would have it, he recognised he needed to take action soon on Extending the lease. Jacob extended the lease just ahead of time last August. Jacob and the freeholder via the management company eventually settled on an amount of £6,000 . If he failed to meet the deadline, the premium would have escalated by a minimum £1,000.
Dr Molly Robinson acquired a one bedroom flat in Holborn in September 1995. We are asked if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable homes in Holborn with 100 year plus lease were worth £205,000. The average ground rent payable was £50 invoiced annually. The lease elapsed in 2105. Taking into account 79 years outstanding we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.
An example of a Lease Extension case for a Holborn premises 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.