When it comes to long leasehold premises in Holborn, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are less than eighty years left. Anyone in Holborn with a lease nearing 81 years remaining should seriously consider extending it sooner than later. When a lease has under eighty years left, under the current statute the landlord is entitled to calculate and charge a larger amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Holborn with in excess of 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you enhanced 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 conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Benjamin, came very near to the eighty-year threshold with the lease on his first floor apartment in Holborn. In buying his property two decades ago, the unexpired term was of minimal concern. by good luck, he became aware that he needed to take action soon on Extending the lease. Benjamin was able to extend his lease just under the wire in September. Benjamin and the landlord ultimately settled on an amount of £5,500 . If he not met the deadline, the premium would have become more costly by a minimum £1,000.
Last Spring we were contacted by Dr Kian Davies , who completed a recently refurbished apartment in Holborn in May 2003. The question was if we could approximate the price would likely be for a ninety year extension to my lease. Identical homes in Holborn with an extended lease were worth £257,800. The average ground rent payable was £65 collected monthly. The lease expired on 5 May 2090. Having 65 years left we calculated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 not including expenses.
An example of a Lease Extension matter before the tribunal 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 affected 1 flat. The number of years remaining on the existing lease(s) was 66.8 years.