The market value of a leasehold property in Horbury depends on how long the lease has remaining. If it is close to or fewer than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that a lease extension can be addressed in advance of the 80 year cut off point. Statute entitles Horbury qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Halifax | 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 also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Horbury can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Horbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful discussions with the freeholder of her two bedroom apartment in Horbury, Niamh started the lease extension process just as her lease was nearing the crucial eighty-year threshold. The transaction was concluded in September 2012. The freeholder’s costs were kept to an absolute minimum.
In 2011 we were contacted by Ms L Pérez who, having purchased a one bedroom apartment in Horbury in September 2000. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by an additional years. Similar flats in Horbury with 100 year plus lease were in the region of £243,000. The average amount of ground rent was £65 collected monthly. The lease finished on 14 August 2088. Having 63 years left we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 plus costs.
In 2014 we were contacted by Dr Adam Williams who, having owned a purpose-built flat in Horbury in May 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable homes in Horbury with 100 year plus lease were worth £181,600. The average ground rent payable was £55 invoiced monthly. The lease ran out in 2077. Given that there were 52 years left we calculated the premium to the freeholder for the lease extension to be between £30,400 and £35,200 not including expenses.