It’s an underpublicised certainty that a Holmfirth residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Holmfirth property prices.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term falls below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Holmfirth will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not qualify. 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 conveyancer throughout the formalities.
Leasehold premises in Holmfirth with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
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 wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Hunter, came seriously near to the 80-year threshold with the lease on his two bedroom flat in Holmfirth. Having bought his home two decades ago, the unexpired term was of little relevance. by good luck, he noticed he needed to take action soon on Extending the lease. Hunter arranged for a lease extension at the eleventh hour in July. Hunter and the freeholder via the managing agents in the end settled on sum of £5,000 . If the lease had descended to less than eighty years, the sum would have become more costly by a minimum £1,025.
In 2010 we were e-mailed by Ms Y Clarke who, having took over the lease of a first floor flat in Holmfirth in March 2002. The dilemma was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Identical flats in Holmfirth with 100 year plus lease were worth £246,800. The average ground rent payable was £60 billed yearly. The lease lapsed in 2075. Given that there were 50 years as a residual term we calculated the premium to the landlord to extend the lease to be between £44,700 and £51,600 exclusive of expenses.
In 2013 we were called by Dr U Turner who, having purchased a first floor apartment in Holmfirth in September 2009. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative homes in Holmfirth with a long lease were in the region of £208,200. The mid-range ground rent payable was £65 invoiced quarterly. The lease expired on 11 November 2086. Taking into account 61 years remaining we approximated the compensation to the freeholder to extend the lease to be between £19,000 and £22,000 plus costs.