It’s an underpublicised certainty that a Holmfirth residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Holmfirth property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in Holmfirth will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Holmfirth,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Holmfirth valuers.
Max owned a studio flat in Holmfirth being sold with a lease of a little over 61 years remaining. Max on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Max to invoke his statutory right. Max procured expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last May we were phoned by Mr and Mrs. B Michel , who took over the lease of a newly refurbished apartment in Holmfirth in March 2012. The question was if we could estimate the price would be to extend the lease by an additional years. Identical flats in Holmfirth with an extended lease were in the region of £255,000. The mid-range amount of ground rent was £50 billed yearly. The lease expired on 7 June 2097. Considering the 71 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Last month we were approach by Mr R Ricardo , who moved into a recently refurbished flat in Holmfirth in July 2004. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Comparable homes in Holmfirth with an extended lease were valued about £254,200. The average ground rent payable was £60 collected annually. The lease terminated on 8 November 2077. Having 51 years unexpired we estimated the compensation to the landlord to extend the lease to be within £43,700 and £50,600 not including legals.