Huddersfield leases on residential properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard 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. Flat owners in Huddersfield will usually be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for decades to come.
| 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; |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle 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 protracted correspondence with the freeholder of her first floor apartment in Huddersfield, Gemma commenced the lease extension process as the eighty year threshold was fast advancing. The transaction was concluded in August 2009. The freeholder’s costs were restricted to about 600 GBP.
Last Winter we were contacted by Mrs Niamh Hall , who was assigned a lease of a first floor flat in Huddersfield in July 2000. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by ninety years. Comparable premises in Huddersfield with an extended lease were valued around £260,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease terminated in 2098. Given that there were 72 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.
Last April we were contacted by Mr and Mrs. I Anderson , who completed a garden flat in Huddersfield in July 1997. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparable flats in Huddersfield with an extended lease were valued around £256,600. The average amount of ground rent was £60 invoiced quarterly. The lease lapsed in 2078. Having 52 years remaining we estimated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 not including costs.