Holmfirth leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Holmfirth tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Holmfirth you should see if your lease has between 70 and ninety years left. There are good reasons why a Holmfirth flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
It is conventional wisdom that a residential leasehold with more than 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 worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Engaging our service will provide you enhanced control over the value of your Holmfirth leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Edward was the the leasehold owner of a conversion flat in Holmfirth being marketed with a lease of a little over 61 years left. Edward on an informal basis approached his freeholder a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Edward to exercise his statutory right. Edward procured expert advice and secured satisfactory resolution without going to tribunal and ending up with a market value flat.
Ms T Morgan moved into a one bedroom apartment in Holmfirth in May 2011. The dilemma was if we could estimate the premium could be for a 90 year extension to my lease. Identical homes in Holmfirth with 100 year plus lease were worth £183,600. The mid-range ground rent payable was £65 billed per annum. The lease ended on 12 January 2082. Given that there were 57 years remaining we estimated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including professional charges.
Last Summer we were approach by Ms Sophie Young , who bought a purpose-built flat in Holmfirth in October 1995. We are asked if we could approximate the premium would likely be to prolong the lease by ninety years. Identical flats in Holmfirth with 100 year plus lease were valued around £245,000. The average ground rent payable was £50 collected quarterly. The lease concluded in 2093. Taking into account 68 years left we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.