The re-sale value of a leasehold property in Huddersfield depends on how many years the lease has remaining. If it is close to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be addressed well before the eighty year cut off point. Statute enables Huddersfield qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Huddersfield with over 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 to be gained by purchasing the reversionary interest 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Retaining our service gives you enhanced control over the value of your Huddersfield leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Edward, came very close to the 80-year mark with the lease on his basement apartment in Huddersfield. Having bought his flat 18 years ago, the length of the lease was of minimal importance. Luckily, it dawned on him that he needed to take steps soon on Extending the lease. Edward was able to extend his lease just ahead of time in May. Edward and the landlord who owned the flat above subsequently settled on the final figure of £6,000 . If he not met the deadline, the figure would have increased by a minimum £975.
Ms Kate Jones completed a ground floor flat in Huddersfield in January 1995. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Comparable premises in Huddersfield with an extended lease were valued about £254,200. The mid-range amount of ground rent was £60 collected every twelve months. The lease ran out in 2076. Taking into account 51 years unexpired we approximated the premium to the freeholder for the lease extension to be within £43,700 and £50,600 exclusive of professional charges.
In 2012 we were approached by Mr and Mrs. F López who, having owned a newly refurbished flat in Huddersfield in March 2002. The dilemma was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable residencies in Huddersfield with a long lease were worth £210,600. The mid-range ground rent payable was £45 billed yearly. The lease finished in 2087. Having 62 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £18,100 and £20,800 plus professional charges.