Unfortunately that a Huddersfield residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Huddersfield property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be payable. Most leasehold owners in Huddersfield will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the formalities.
Leasehold properties in Huddersfield with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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 should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Lease extensions in Huddersfield can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Huddersfield lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the freeholder of her basement apartment in Huddersfield, Isabelle initiated the lease extension process just as the lease was coming close to the all-important eighty-year deadline. The transaction was concluded in September 2014. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were approached by Mr and Mrs. N Morel who, having bought a one bedroom flat in Huddersfield in March 2012. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by an additional years. Similar homes in Huddersfield with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed every twelve months. The lease concluded on 16 October 2094. Considering the 69 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
Mr B Moore owned a ground floor apartment in Huddersfield in October 1998. We are asked if we could estimate the price would be for a ninety year extension to my lease. Identical properties in Huddersfield with a long lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced quarterly. The lease terminated in 2105. Given that there were 80 years as a residual term we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.