When it comes to long leasehold premises in Horbury, you effectively rent it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than 80 years left. Residents in Horbury with a lease approaching 81 years left should seriously think of extending it as soon as possible. Once a lease has under 80 years remaining, under the current Act the freeholder is entitled to calculate and charge a greater premium, assessed on a technical computation, known as “marriage value” which is payable.
It is generally considered that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you enhanced control over the value of your Horbury leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy discussions with the landlord of her one bedroom apartment in Horbury, Kayleigh initiated the lease extension process as the eighty year deadline was rapidly approaching. The lease extension completed in February 2013. The freeholder’s costs were kept to an absolute minimum.
Last Christmas we were called by Mr M Baker , who bought a one bedroom apartment in Horbury in September 2002. The question was if we could approximate the price could be for a 90 year extension to my lease. Identical flats in Horbury with 100 year plus lease were valued about £174,200. The average amount of ground rent was £55 invoiced every twelve months. The lease finished on 27 September 2076. Taking into account 51 years outstanding we approximated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus expenses.
In 2013 we were called by Dr Sebastian Walker who, having moved into a ground floor apartment in Horbury in February 1996. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Identical properties in Horbury with 100 year plus lease were in the region of £285,000. The mid-range ground rent payable was £45 collected per annum. The lease concluded in 2096. Given that there were 71 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.