The market value of a leasehold property in Holmfirth depends on how long the lease has left to run. If it is near to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be finalised well before the eighty year threshold. Statute enables Holmfirth qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus a supplemental term of 90 years. The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| 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. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
The conveyancing solicitors that we work with procure Holmfirth 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.
Jamie owned a studio flat in Holmfirth on the market with a lease of fraction over 59 years outstanding. Jamie informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 annually. No ground rent would be due on a lease extension were Jamie to invoke his statutory right. Jamie procured expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
In 2010 we were contacted by Dr A Thomas who, having was assigned a lease of a ground floor flat in Holmfirth in June 2011. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Comparative residencies in Holmfirth with an extended lease were worth £265,000. The average ground rent payable was £50 billed yearly. The lease ended on 18 January 2098. Having 73 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus expenses.
Mr O Khan acquired a studio apartment in Holmfirth in June 1999. The question was if we could estimate the premium would likely be for a 90 year lease extension. Similar residencies in Holmfirth with a long lease were in the region of £264,000. The mid-range amount of ground rent was £60 invoiced yearly. The lease ended in 2078. Taking into account 53 years left we estimated the premium to the landlord to extend the lease to be between £37,100 and £42,800 not including professional charges.