Horbury leases on residential deteriorating in value. Where your lease has about 90 years unexpired, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease drops below this level then you start paying an additional element called marriage value. Flat owners in Horbury will usually qualify for a lease extension; however a solicitor will check if you qualify. In certain cases you may not qualify. There are also strict timetables and steps to comply with once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure 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.
Alexander was the the leasehold proprietor of a 2 bedroom apartment in Horbury on the market with a lease of just over 61 years outstanding. Alexander on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Alexander to invoke his statutory right. Alexander obtained expert advice and was able to make an informed judgement and handle with the matter and sell the property.
In 2010 we were e-mailed by Mr A Garcia who, having moved into a basement apartment in Horbury in October 1997. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical properties in Horbury with an extended lease were in the region of £300,000. The mid-range amount of ground rent was £50 collected yearly. The lease elapsed on 19 October 2100. Given that there were 75 years unexpired we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including professional charges.
Last year we were phoned by Mr K Alexander , who was assigned a lease of a garden flat in Horbury in March 2010. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparative homes in Horbury with 100 year plus lease were valued about £250,400. The mid-range ground rent payable was £65 invoiced monthly. The lease concluded in 2089. Having 64 years outstanding we estimated the premium to the landlord to extend the lease to be within £19,000 and £22,000 plus costs.