Unfortunately that a Holmfirth residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Holmfirth property market.Once your lease nears 85ish years, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips below 80 years - otherwise a higher amount will be payable. Most leasehold owners in Holmfirth will be able to extend under the legislation; however a conveyancer should be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold residencies in Holmfirth with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Holmfirth,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Holmfirth valuers.
John owned a conversion apartment in Holmfirth being marketed with a lease of a few days over 59 years unexpired. John informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £100 yearly. Ordinarily, ground rent would not be payable on a lease extension were John to exercise his statutory right. John obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and sell the flat.
Last Spring we were e-mailed by Dr W Wood , who bought a one bedroom apartment in Holmfirth in June 2008. The dilemma was if we could shed any light on how much (approximately) premium would likely be to extend the lease by ninety years. Identical flats in Holmfirth with a long lease were in the region of £227,800. The average amount of ground rent was £45 invoiced monthly. The lease ran out on 8 April 2090. Having 65 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.
In 2009 we were called by Dr Jasmine Taylor who, having was assigned a lease of a one bedroom apartment in Holmfirth in February 2006. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Identical premises in Holmfirth with a long lease were valued about £275,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish in 2101. Having 76 years unexpired we approximated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including fees.