When it comes to long leasehold premises in Huddersfield, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Anyone in Huddersfield with a lease approaching 81 years unexpired should seriously consider extending it sooner than later. When the lease term has under 80 years left, under the relevant legislation the landlord can calculate and levy a greater amount, based on a technical computation, known as “marriage value” which is payable.
Leasehold premises in Huddersfield with in excess of 100 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 home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
The lawyers that we work with undertake Huddersfield 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 conveyancing solicitor we work with provide it.
Subsequent to unsuccessful discussions with the landlord of her ground floor flat in Huddersfield, Caitlin commenced the lease extension process just as the lease was nearing the crucial 80-year deadline. The legal work was finalised in June 2009. The landlord’s costs were kept to an absolute minimum.
Dr M Cook moved into a basement flat in Huddersfield in January 2007. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Comparative homes in Huddersfield with an extended lease were worth £245,000. The mid-range amount of ground rent was £50 collected annually. The lease ran out on 13 August 2094. Given that there were 68 years remaining we estimated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.
Last month we were phoned by Dr I Morel , who moved into a studio apartment in Huddersfield in May 2009. The question was if we could approximate the premium would be for a 90 year lease extension. Similar flats in Huddersfield with an extended lease were worth £285,000. The average ground rent payable was £55 billed every twelve months. The lease terminated on 12 October 2105. Given that there were 79 years unexpired we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus professional charges.