The closer a residential lease in Huddersfield nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of 125 years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should consider extending sooner rather than later. The majority of flat owners in Huddersfield will qualify for this right; that being said a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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 | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Yorkshire 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. |
Lease extensions in Huddersfield can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Huddersfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Toby, started to get close to the eighty-year threshold with the lease on his purpose- built apartment in Huddersfield. Having purchased his home two decades ago, the unexpired term was of no concern. Fortunately, he noticed he would soon be paying way over the odds for a lease extension. Toby was able to extend his lease just under the wire last May. Toby and the freeholder via the managing agents ultimately agreed on sum of £6,000 . If the lease had descended below eighty years, the amount would have increased by at least £900.
In 2009 we were contacted by Mr and Mrs. B Hernández who, having was assigned a lease of a recently refurbished apartment in Huddersfield in April 1998. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Huddersfield with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 billed quarterly. The lease termination date was in 2102. Having 76 years left we calculated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of costs.
In 2012 we were approached by Mr and Mrs. S Díaz who, having took over the lease of a ground floor flat in Huddersfield in August 2002. The question was if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Similar residencies in Huddersfield with a long lease were valued around £176,200. The average amount of ground rent was £65 invoiced every twelve months. The lease expiry date was on 25 September 2082. Taking into account 56 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £29,500 and £34,000 exclusive of professional charges.