Huddersfield leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. Legislation has been in place for sometime now which permits qualifying Huddersfield residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Huddersfield you must check if your lease has between seventy and 90 years left. There are good reasons why a Huddersfield flat owner with a lease having around eighty years left should take action to make sure that a lease extension is actioned without delay
Leasehold residencies in Huddersfield with in excess of 100 years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Regardless of whether you are a tenant or a landlord in Huddersfield,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Huddersfield valuers.
After unsuccessful correspondence with the freeholder of her purpose-built apartment in Huddersfield, Rosie started the lease extension process as the 80 year mark was rapidly coming. The legal work was finalised in August 2008. The landlord’s fees were restricted to slightly above 650 pounds.
In 2011 we were approached by Dr Naomi Jones who, having purchased a studio apartment in Huddersfield in March 2000. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by 90 years. Similar residencies in Huddersfield with an extended lease were worth £261,600. The average ground rent payable was £60 invoiced quarterly. The lease ran out in 2077. Considering the 52 years left we calculated the compensation to the landlord to extend the lease to be between £39,000 and £45,000 plus fees.
Last Summer we were called by Ms S Cook , who bought a basement apartment in Huddersfield in November 2009. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Identical residencies in Huddersfield with a long lease were worth £218,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease concluded in 2088. Given that there were 63 years remaining we approximated the compensation to the landlord for the lease extension to be between £17,100 and £19,800 exclusive of costs.