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 the lease gets more expensive. Most owners of residential leasehold property in Holborn enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Holborn you would be well advised to see if your lease has between 70 and 90 years left. There are good reasons why a Holborn leaseholder with a lease having around 80 years remaining should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Holborn can be a difficult process. We recommend you get guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Holborn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Two years ago Luca, started to get close to the 80-year threshold with the lease on his purpose- built apartment in Holborn. Having purchased his flat 18 years previously, the unexpired term was of no relevance. Fortunately, he realised he needed to take action soon on Extending the lease. Luca extended the lease just under the wire last August. Luca and the freeholder ultimately agreed on the final figure of £5,000 . If he not met the deadline, the price would have escalated by at least £925.
Mrs Louise Vincent moved into a purpose-built flat in Holborn in January 1996. We are asked if we could estimate the price could be for a 90 year extension to my lease. Similar premises in Holborn with 100 year plus lease were in the region of £265,200. The average amount of ground rent was £65 invoiced quarterly. The lease ran out on 11 October 2092. Taking into account 66 years remaining we approximated the premium to the landlord to extend the lease to be within £15,200 and £17,600 not including 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 unexpired lease term was 66.8 years.