Holmfirth leases on domestic properties are gradually losing value. if your lease has in the region of ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher amount will be due. Leasehold owners in Holmfirth will usually qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain situations you may not be entitled. There are prescribed timetables and formalities to follow once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold properties in Holmfirth with in excess of 100 years remaining on the lease are often referred to as ‘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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service will provide you increased control over the value of your Holmfirth leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago John, started to get close to the 80-year mark with the lease on his studio flat in Holmfirth. Having purchased his home 19 years ago, the unexpired term was of little importance. Luckily, he recognised he needed to take steps soon on a lease extension. John arranged for a lease extension just in the nick of time last August. John and the freeholder eventually agreed on the final figure of £5,000 . If he failed to meet the deadline, the figure would have become more exhorbitant by a minimum £925.
Mr and Mrs. T Michel owned a newly refurbished apartment in Holmfirth in February 1995. We are asked if we could estimate the price could be for a 90 year extension to my lease. Similar flats in Holmfirth with a long lease were worth £166,400. The mid-range ground rent payable was £60 invoiced quarterly. The lease finished on 27 July 2078. Taking into account 54 years unexpired we approximated the premium to the landlord for the lease extension to be between £32,300 and £37,400 not including fees.
In 2014 we were phoned by Mr and Mrs. R Bonnet who, having completed a one bedroom apartment in Holmfirth in February 1999. The question was if we could estimate the premium could be for a 90 year extension to my lease. Identical properties in Holmfirth with an extended lease were valued around £227,800. The average amount of ground rent was £45 collected per annum. The lease concluded in 2089. Given that there were 65 years outstanding we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including expenses.