Holborn leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. It is the case that most Holborn tenants have the right to extend their lease by an additional 90 years in accordance with the 1993 Leasehold Reform Act. Where you are a leasehold owner in Holborn you really ought to check if your lease has between seventy and 90 years left. There are good reasons why a Holborn flat owner with a lease having around eighty years left should take action to make sure that a lease extension is effected without delay
Leasehold residencies in Holborn with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Retaining our service will provide you better control over the value of your Holborn leasehold, as your property will be more valuable and marketable in respect of lease length should you decide 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.
Trailing unsuccessful discussions with the freeholder of her garden flat in Holborn, Georgia commenced the lease extension process as the eighty year mark was rapidly nearing. The legal work completed in January 2006. The landlord’s charges were negotiated to under 450 GBP.
Mr and Mrs. M Martin moved into a one bedroom apartment in Holborn in July 2001. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Identical premises in Holborn with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £45 invoiced every twelve months. The lease expired on 23 June 2094. Having 70 years left we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including professional charges.
An example of a Lease Extension decision 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 lease term was 66.8 years.