Holmfirth leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Leasehold owners in Holmfirth will usually qualify for a lease extension; however a solicitor will confirm your eligibility. In some circumstances you may not be entitled. There are prescribed timetables and steps to follow once the process has commenced so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold properties in Holmfirth with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a freeholder in Holmfirth,the lease extension lawyers 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.
Last year Max, started to get near to the 80-year threshold with the lease on his garden flat in Holmfirth. In buying his flat twenty years ago, the length of the lease was of no interest. by good luck, he recognised he would imminently be paying an inflated amount for Extending the lease. Max arranged for a lease extension at the eleventh hour last May. Max and the landlord who owned the flat above subsequently agreed on a premium of £6,000 . If he failed to meet the deadline, the figure would have escalated by at least £1,125.
Last year we were approach by Mr Hugo Roux , who purchased a purpose-built apartment in Holmfirth in August 2006. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Similar homes in Holmfirth with a long lease were worth £210,600. The average amount of ground rent was £45 invoiced quarterly. The lease ended on 16 February 2088. Having 62 years remaining we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of legals.
Last October we were called by Mr and Mrs. S Alexander , who took over the lease of a ground floor apartment in Holmfirth in October 2004. The question was if we could estimate the price could be to prolong the lease by a further 90 years. Identical premises in Holmfirth with an extended lease were in the region of £265,000. The average amount of ground rent was £50 collected monthly. The lease ended on 17 June 2099. Taking into account 73 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.