Why you should start your Holborn lease extension

Main reasons to start your Holborn lease extension today:

A Holborn lease depreciates with the years remaining on the lease.

The market value of Holborn leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can escalate substantially once the unexpired lease term is below than eighty years

An extended lease is almost the same value as a freehold

Leasehold premises in Holborn with in excess of one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges merit it.

Lending institutions may not finance a property with a short lease

The propensity since over the last decade has been for banks to tighten lending requirements generally - this has extended to the property over which the home loan is to be charged. This has meant the unexpired lease term required by lenders has increased. Historically banks were content with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Holborn lease extensions?

Engaging our service will provide you better control over the value of your Holborn leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Holborn Lease Extension Case Summaries:

Naomi, Holborn, North London,

After unsuccessful discussions with the freeholder of her first floor flat in Holborn, Naomi initiated the lease extension process just as the lease was approaching the all-important eighty-year deadline. The legal work was concluded in January 2015. The landlord’s charges were restricted to below five hundred GBP.

Holborn case:

In 2012 we were approached by Mr and Mrs. S Patel who, having owned a garden apartment in Holborn in February 1999. The dilemma was if we could shed any light on how much (roughly) price would be for a 90 year extension to my lease. Comparable residencies in Holborn with an extended lease were valued around £223,400. The mid-range ground rent payable was £60 collected yearly. The lease termination date was on 2 June 2085. Taking into account 59 years remaining we approximated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 plus legals.