Why you should commence your Holmfirth lease extension

Why you should start your Holmfirth lease extension today:

Increase your lease and increase your Holmfirth property value

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 ninety years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Holmfirth you should investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

Holmfirth property with a lease extension is almost the same value as a freehold

Leasehold residencies in Holmfirth with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.

Lenders may decide not to issue a mortgage on a short lease

Mortgage companies are really restricting their approach as regards to properties in Holmfirth with short leases. For instance you may find that their lending requirements are stricter and that they alter interest rates depending on the unexpired lease term. Some may even refuse to lend completely, so where you needed to sell, your only options would be to find a cash purchaser, or hope for the best at auction thus limiting the number of potential purchasers.

Get in touch with one of our Holmfirth lease extension solicitors or enfranchisement solicitors

The lawyers that we work with handle Holmfirth lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.

Holmfirth Lease Extension Case Summaries:

Danielle, Holmfirth, West Yorkshire,

After unsuccessful discussions with the freeholder of her studio flat in Holmfirth, Danielle started the lease extension process just as her lease was nearing the critical 80-year threshold. The legal work was concluded in August 2009. The freeholder’s charges were restricted to about 500 GBP.

Holmfirth case:

Ms G Nguyen moved into a studio apartment in Holmfirth in February 2006. We are asked if we could estimate the price could be to extend the lease by ninety years. Identical flats in Holmfirth with 100 year plus lease were in the region of £265,000. The mid-range amount of ground rent was £55 collected per annum. The lease end date was in 2100. Having 74 years outstanding we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including legals.

Holmfirth case:

Ms R Bennett completed a one bedroom flat in Holmfirth in September 2002. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Holmfirth with a long lease were valued around £166,400. The mid-range amount of ground rent was £60 billed monthly. The lease concluded on 16 August 2080. Having 54 years unexpired we estimated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 plus professional charges.