Unfortunately that a East and West Horsley residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the depreciation being disguised by increases in the East and West Horsley property market.Where your lease has approximately ninety years left, you need to 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 lower than 80 years - otherwise a higher amount will be payable. The majority of leasehold owners in East and West Horsley will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold premises in East and West Horsley with over one hundred years outstanding 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 premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in East and West Horsley,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with East and West Horsley valuers.
18 months ago Jason, came dangerously near to the 80-year mark with the lease on his first floor apartment in East and West Horsley. Having bought his flat two decades ago, the lease term was of no bearing. Fortunately, he recognised he needed to take steps soon on Extending the lease. Jason was able to extend his lease just under the wire last March. Jason and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If the lease had slid below eighty years, the amount would have gone up by a minimum £925.
Dr C García owned a ground floor flat in East and West Horsley in February 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Comparable properties in East and West Horsley with 100 year plus lease were in the region of £275,000. The average ground rent payable was £55 billed yearly. The lease expiry date was on 15 March 2102. Taking into account 76 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.
In 2009 we were contacted by Dr H Smith who, having took over the lease of a garden apartment in East and West Horsley in August 1997. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar residencies in East and West Horsley with a long lease were in the region of £176,200. The mid-range amount of ground rent was £65 billed monthly. The lease came to a finish in 2082. Having 56 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of fees.