There is no doubt about it a leasehold flat or house in Holborn is a wasting asset as a result of the diminishing lease term. If the residual term has, in excess of 99 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. Many flat owners in Holborn will meet the qualifying criteria; however a lawyer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety 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 |
|---|---|
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date 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 |
The lawyers that we work with handle Holborn 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 conveyancing solicitor we work with provide it.
Subsequent to protracted negotiations with the freeholder of her purpose-built apartment in Holborn, Francesca commenced the lease extension process just as her lease was approaching the all-important eighty-year mark. The transaction completed in January 2015. The landlord’s costs were kept to an absolute minimum.
Mr and Mrs. S Bennett moved into a first floor apartment in Holborn in July 1999. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Identical properties in Holborn with a long lease were in the region of £206,200. The mid-range amount of ground rent was £60 collected every twelve months. The lease end date was in 2082. Having 56 years outstanding we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 plus expenses.
An example of a Lease Extension case for a Holborn residence 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 related to 1 flat. The unexpired residue of the current lease was 66.8 years.