Huddersfield leases on domestic deteriorating in value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term dips under eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual 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 mostly be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 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. |
Lease extensions in Huddersfield can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor 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 correspondence with the landlord of her two bedroom flat in Huddersfield, Katie initiated the lease extension process just as her lease was nearing the all-important 80-year deadline. The legal work was concluded in October 2008. The landlord’s charges were negotiated to about 700 GBP.
Last July we were called by Dr T Wood , who purchased a garden apartment in Huddersfield in March 1995. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Identical premises in Huddersfield with a long lease were valued about £265,000. The average ground rent payable was £50 collected every twelve months. The lease came to a finish in 2098. Given that there were 73 years outstanding we estimated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.
In 2010 we were contacted by Mr L Khan who, having completed a ground floor flat in Huddersfield in February 2003. The question was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Identical residencies in Huddersfield with a long lease were worth £264,000. The average amount of ground rent was £60 invoiced per annum. The lease lapsed on 22 March 2078. Having 53 years remaining we calculated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 plus legals.