Main reasons to commence your Horbury lease extension

Why you should start your Horbury lease extension today:

A Horbury lease depreciates with the years remaining on the lease.

Horbury leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Horbury residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Horbury you would be well advised to see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Horbury leaseholder with a lease having around eighty years unexpired should take steps to ensure that a lease extension is actioned without delay

Horbury property with a lease extension is almost the same value as a freehold

Leasehold premises in Horbury with in excess of one hundred years left on the lease are sometimes regarded as a ‘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 upside in purchasing the freehold unless savings on ground rent and service charges justify it.

Lending institutions may decide not to grant a mortgage on a short lease

The propensity since over the last decade has been for banks to tighten lending requirements across the board - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. Historically lenders were content with twenty years plus the term of the loan - typically fifty year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our Horbury lease extension solicitors or enfranchisement solicitors

The conveyancing solicitors that we work with handle Horbury 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.

Horbury Lease Extension Example Cases:

Oliver, Horbury, West Yorkshire,

Oliver was the the leasehold proprietor of a high value flat in Horbury being sold with a lease of fraction over 61 years outstanding. Oliver informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Oliver to invoke his statutory right. Oliver obtained expert legal guidance and secured an acceptable deal without resorting to tribunal and ending up with a market value flat.

Horbury case:

Last Summer we were contacted by Ms A Khan , who was assigned a lease of a one bedroom flat in Horbury in August 2011. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Identical homes in Horbury with an extended lease were valued about £233,200. The average amount of ground rent was £60 collected quarterly. The lease terminated in 2087. Given that there were 61 years left we approximated the premium to the landlord for the lease extension to be within £22,800 and £26,400 not including fees.

Horbury case:

Last Winter we were phoned by Mr and Mrs. B Collins , who moved into a ground floor flat in Horbury in November 2002. We are asked if we could shed any light on how much (approximately) price could be for a 90 year lease extension. Comparable properties in Horbury with an extended lease were valued around £171,800. The average amount of ground rent was £55 billed every twelve months. The lease lapsed on 25 September 2076. Taking into account 50 years remaining we estimated the premium to the freeholder to extend the lease to be within £33,300 and £38,400 exclusive of expenses.