Huddersfield leases on domestic properties are gradually losing value. if your lease has about ninety years unexpired, you should start thinking about a lease extension. If lease term is less than 80 years, you will then be required to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your 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 will check your eligibility. In some cases you may not qualify. There are prescribed deadlines and steps to comply with once the process is triggered so it’s prudent to be guided by a lawyer 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 90 years added to any lease with more than 30 years left, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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. |
The conveyancing solicitors 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 conveyancer we work with provide it.
Off the back of unsuccessful negotiations with the freeholder of her first floor flat in Huddersfield, Katherine commenced the lease extension process just as her lease was nearing the all-important eighty-year deadline. The lease extension completed in May 2015. The freeholder’s costs were restricted to slightly above 550 GBP.
Last year we were called by Mr and Mrs. O Hill , who bought a basement flat in Huddersfield in January 2006. The dilemma was if we could estimate the price would be for a ninety year extension to my lease. Similar properties in Huddersfield with a long lease were valued about £256,600. The mid-range amount of ground rent was £60 collected every twelve months. The lease lapsed in 2078. Having 52 years left we approximated the compensation to the freeholder for the lease extension to be between £39,000 and £45,000 not including fees.
Last Spring we were called by Dr L Richardson , who took over the lease of a ground floor flat in Huddersfield in October 2006. We are asked if we could estimate the price could be for a 90 year extension to my lease. Comparable premises in Huddersfield with a long lease were valued about £218,000. The average amount of ground rent was £45 invoiced every twelve months. The lease lapsed in 2089. Taking into account 63 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 exclusive of expenses.