Huddersfield leases on residential deteriorating in value. Where your lease has in the region of ninety years left, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Huddersfield will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm your eligibility. In certain circumstances you may not qualify. There are also strict timetables and formalities to follow once the process has commenced so it’s wise to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors 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 lawyer we work with provide it.
Two years ago Dylan, started to get close to the 80-year mark with the lease on his two bedroom flat in Huddersfield. In buying his property two decades ago, the unexpired term was of no importance. Fortunately, he noticed he would soon be paying an inflated amount for a lease extension. Dylan was able to extend his lease just in the nick of time last March. Dylan and the freeholder ultimately settled on a premium of £5,500 . If the lease had dropped below eighty years, the price would have gone up by at least £1,125.
Last Winter we were called by Ms L Díaz , who moved into a one bedroom flat in Huddersfield in September 2006. The dilemma was if we could approximate the price would likely be for a ninety year lease extension. Identical premises in Huddersfield with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 billed yearly. The lease lapsed on 19 May 2105. Taking into account 79 years unexpired we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of expenses.
In 2009 we were approached by Dr Arthur Bernard who, having was assigned a lease of a ground floor apartment in Huddersfield in September 2001. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Similar residencies in Huddersfield with an extended lease were in the region of £193,400. The average amount of ground rent was £65 collected per annum. The lease expired in 2085. Considering the 59 years remaining we estimated the premium to the freeholder for the lease extension to be between £21,900 and £25,200 not including fees.