Why you should commence your Holmfirth lease extension

Main reasons to commence your Holmfirth lease extension today:

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

Unfortunately that a Holmfirth residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Holmfirth property prices.Where your lease has approximately 90 years left, you need to start considering 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 eighty years - otherwise a higher amount will be payable. Most leasehold owners in Holmfirth will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process is instigated and you will need to be guided by your lawyer for the duration of the formalities.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.

Lending institutions may decide not to issue a mortgage on a short lease

The propensity since 2008 has been for lenders to tighten lending requirements across the board - this has extended to the property over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by banks has increased. In the past lenders were content with 25 years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Holmfirth lease extensions?

Irrespective of whether you are a tenant or a freeholder in Holmfirth,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Holmfirth valuers.

Holmfirth Lease Extension Example Cases:

Adam, Holmfirth, West Yorkshire,

Adam was the the leasehold owner of a 2 bedroom apartment in Holmfirth on the market with a lease of a few days over 72 years left. Adam informally spoke with his freeholder being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Adam to invoke his statutory right. Adam obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.

Holmfirth case:

In 2011 we were called by Mr P Taylor who, having bought a studio apartment in Holmfirth in April 2010. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparative premises in Holmfirth with 100 year plus lease were worth £280,000. The mid-range ground rent payable was £55 billed monthly. The lease came to a finish on 13 May 2104. Taking into account 78 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.

Holmfirth case:

In 2011 we were contacted by Mr and Mrs. S Ricardo who, having purchased a ground floor flat in Holmfirth in February 2008. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparable residencies in Holmfirth with 100 year plus lease were in the region of £191,000. The mid-range ground rent payable was £65 billed monthly. The lease elapsed on 8 August 2084. Taking into account 58 years unexpired we calculated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 plus costs.