When it comes to domestic leasehold property in Huddersfield, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than eighty years remaining. Anyone in Huddersfield with a lease approaching 81 years left should seriously think of extending it without delay. When the lease term has below 80 years remaining, under the current statute the landlord is entitled to calculate and charge a greater amount, based on a technical multiplication, strangely termed as “marriage value” which is due.
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 further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 lawyers that we work with undertake 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 conveyancing solicitor we work with provide it.
Daniel was the the leasehold proprietor of a high value apartment in Huddersfield being sold with a lease of a little over sixty years remaining. Daniel informally contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £100 yearly. No ground rent would be payable on a lease extension were Daniel to exercise his statutory right. Daniel procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Mr and Mrs. K White bought a first floor flat in Huddersfield in October 2009. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Comparative flats in Huddersfield with an extended lease were valued around £270,000. The average amount of ground rent was £55 invoiced per annum. The lease ran out on 22 June 2098. Considering the 74 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.
In 2011 we were contacted by Mr and Mrs. U Edwards who, having took over the lease of a garden flat in Huddersfield in January 1995. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Similar properties in Huddersfield with an extended lease were in the region of £166,400. The mid-range ground rent payable was £60 billed per annum. The lease elapsed in 2078. Taking into account 54 years as a residual term we approximated the premium to the landlord to extend the lease to be between £32,300 and £37,400 exclusive of fees.