The closer a domestic lease in Holsworthy nears to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, more than 100 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Holsworthy will meet the qualifying criteria; however a conveyancer can confirm whether you are eligible for a lease extension. 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 residential leasehold with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Holsworthy,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Holsworthy valuers.
Half a year ago Milo, came precariously close to the eighty-year threshold with the lease on his first floor flat in Holsworthy. Having bought his flat 19 years ago, the unexpired term was of little importance. Thankfully, he realised he would imminently be paying an escalated premium for a lease extension. Milo was able to extend his lease just under the wire in August. Milo and the freeholder subsequently agreed on the final figure of £5,000 . If he not met the deadline, the sum would have gone up by at least £1,025.
In 2013 we were e-mailed by Mr and Mrs. P Nelson who, having purchased a purpose-built apartment in Holsworthy in September 1999. The dilemma was if we could approximate the premium would be for a 90 year lease extension. Comparative premises in Holsworthy with 100 year plus lease were in the region of £254,200. The mid-range amount of ground rent was £60 invoiced quarterly. The lease terminated on 24 February 2075. Taking into account 51 years outstanding we calculated the premium to the landlord for the lease extension to be between £43,700 and £50,600 plus professional charges.
In 2014 we were contacted by Mr D King who, having moved into a ground floor flat in Holsworthy in November 2009. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Holsworthy with an extended lease were in the region of £210,600. The average amount of ground rent was £45 collected quarterly. The lease ended in 2086. Considering the 62 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 not including costs.