East and West Horsley residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
Leasehold premises in East and West Horsley with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| National Westminster Bank | |
| Santander | |
| Royal Bank of Scotland |
The conveyancers that we work with undertake East and West Horsley 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 conveyancer we work with provide it.
Last year Leon, came precariously close to the 80-year threshold with the lease on his ground floor flat in East and West Horsley. In buying his flat two decades ago, the unexpired term was of minimal relevance. Fortunately, he noticed he needed to take action soon on Extending the lease. Leon was able to extend his lease just in the nick of time in August. Leon and the freeholder in the end agreed on sum of £5,500 . If the lease had fallen below 80 years, the sum would have gone up by at least £1,050.
Last Christmas we were called by Mr U Brooks , who took over the lease of a basement flat in East and West Horsley in November 2005. The dilemma was if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical homes in East and West Horsley with 100 year plus lease were worth £256,600. The mid-range amount of ground rent was £60 collected yearly. The lease ran out in 2078. Having 52 years unexpired we calculated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 not including expenses.
In 2010 we were called by Mr and Mrs. J Bernard who, having owned a basement apartment in East and West Horsley in May 2001. We are asked if we could estimate the premium would likely be to extend the lease by an additional years. Comparable properties in East and West Horsley with an extended lease were in the region of £218,000. The mid-range amount of ground rent was £45 billed yearly. The lease finished in 2089. Having 63 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £17,100 and £19,800 plus expenses.