The nearer a domestic lease in Huddersfield nears to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, in excess of 99 years remaining then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending without delay. Most flat owners in Huddersfield will meet the qualifying criteria; nevertheless a lawyer will be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold properties in Huddersfield with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Regardless of whether you are a tenant or a landlord in Huddersfield,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Huddersfield valuers.
Elijah owned a studio flat in Huddersfield on the market with a lease of just over 59 years remaining. Elijah informally contacted his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Elijah to exercise his statutory right. Elijah obtained expert advice and was able to make an informed judgement and deal with the matter and ending up with a market value flat.
In 2014 we were phoned by Dr Jackson Michel who, having took over the lease of a ground floor apartment in Huddersfield in August 2007. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical residencies in Huddersfield with an extended lease were worth £275,000. The average amount of ground rent was £55 collected monthly. The lease concluded on 18 April 2102. Taking into account 77 years unexpired we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of fees.
Mr Hunter Rogers took over the lease of a studio apartment in Huddersfield in May 2009. The dilemma was if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparative homes in Huddersfield with 100 year plus lease were worth £183,600. The mid-range amount of ground rent was £65 collected yearly. The lease expired in 2082. Taking into account 57 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.