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. Most owners of residential leasehold property in Holmfirth enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Holmfirth you must check if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as an element of the premium you pay is what is known as a marriage value
Leasehold premises in Holmfirth with more than 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Leeds Building Society |
The conveyancers that we work with procure 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 lawyer we work with provide it.
16 months ago Tommy, started to get near to the 80-year mark with the lease on his purpose- built apartment in Holmfirth. In buying his home two decades ago, the length of the lease was of minimal interest. by good luck, he recognised he needed to take action soon on Extending the lease. Tommy was able to extend his lease just in the nick of time in September. Tommy and the freeholder via the managing agents eventually agreed on the final figure of £5,500 . If he had missed the deadline, the premium would have become more exhorbitant by at least £1,150.
In 2013 we were e-mailed by Dr Andrew Hernández who, having acquired a purpose-built flat in Holmfirth in February 2002. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by 90 years. Comparative homes in Holmfirth with an extended lease were valued about £193,400. The mid-range amount of ground rent was £65 invoiced per annum. The lease expiry date was in 2085. Having 59 years unexpired we estimated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 not including expenses.
Mrs T Patel took over the lease of a garden apartment in Holmfirth in August 2006. The question was if we could approximate the premium would be to extend the lease by a further 90 years. Similar residencies in Holmfirth with a long lease were valued around £255,000. The average amount of ground rent was £50 collected every twelve months. The lease ended on 12 October 2096. Taking into account 70 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £10,500 and £12,000 not including legals.