Main reasons to start your Huddersfield lease extension
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Main reasons to start your Huddersfield lease extension today:
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<h4> A <a href="http://www.lendermonitor.com/conveyancing/loc/huddersfield">Huddersfield</a> lease depreciates with the years remaining on the lease.
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<p> With a residential leasehold property in Huddersfield, you effectively rent it for a certain period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about a lease extension sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than 80 years left. Anyone in Huddersfield with a lease nearing 81 years unexpired should seriously think of extending it sooner rather than later. Once a lease has fewer than eighty years left, under the current statute the landlord is entitled to calculate and demand a larger amount, based on a technical calculation, strangely termed as “marriage value” which is due. <h4>Huddersfield property with a lease extension has roughly the same value as a freehold</h4>
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Leasehold premises in Huddersfield with over 100 years remaining 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 situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it. <h4>Lenders will not grant a mortgage on a short lease</h4> Lenders do not grant a mortgage on short residential leases. You are likely to experience difficulties where you want to sell your flat in Huddersfield if the remaining lease term is less than the criteria set by the majority of banks and building societies. Different mortgage companies have varying requirements but generally theyrequire an unexpired term of at least seventy years.
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<td>Barnsley Building Society</td>
<td> 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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<td>Halifax</td>
<td> Minimum 70 years from the date of the mortgage.
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<td>Santander</td>
<td> You must report the unexpired lease term to us and await our instructions if: <br />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<br />2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or<br />3. no valuation report is provided<br />However, we will not accept a lease where on expiry of the mortgage:<br />(i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or<br />(ii) less than 30 years remain and the loan is repaid on a capital and interest basis<br /><br />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.
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<td>Royal Bank of Scotland</td>
<td> Mortgage term plus 30 years.
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<td>Yorkshire Building Society</td>
<td> 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.
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<h4> Get in touch with one of our Huddersfield lease extension solicitors or enfranchisement solicitors
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<p> Retaining our service gives you better control over the value of your Huddersfield leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell.
The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions. <h4>
Huddersfield Lease Extension Example Cases:
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<h5> Leo, Huddersfield, West Yorkshire,</h5>
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Leo owned a high value apartment in Huddersfield on the market with a lease of a little over fifty eight years outstanding. Leo on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. Ordinarily, ground rent would not be due on a lease extension were Leo to exercise his statutory right. Leo obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
<h5>Huddersfield case:</h5>
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In 2010 we were contacted by Dr Callum Vincent who, having was assigned a lease of a one bedroom flat in Huddersfield in August 2003. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year lease extension. Comparative residencies in Huddersfield with a long lease were in the region of £183,600. The average amount of ground rent was £65 invoiced every twelve months. The lease finished in 2083. Given that there were 57 years remaining we calculated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of legals.
<h5>Huddersfield case:</h5>
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In 2012 we were called by Mr and Mrs. B Martin who, having bought a recently refurbished flat in Huddersfield in July 2000. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Similar flats in Huddersfield with an extended lease were worth £245,000. The average amount of ground rent was £50 billed quarterly. The lease ended on 18 October 2094. Taking into account 68 years left we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.
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