Horfield leases on residential deteriorating in value. Where your lease has about ninety years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for your lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be payable. Leasehold owners in Horfield will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In certain situations you may not qualify. There are also strict deadlines and formalities to comply with once the process is triggered so it’s sensible to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence 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. |
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle Horfield 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 conveyancer we work with provide it.
During the course of the last few months Milo, came precariously close to the 80-year mark with the lease on his basement apartment in Horfield. Having purchased his property two decades ago, the unexpired term was of no concern. by good luck, he recognised he needed to take action soon on Extending the lease. Milo extended the lease just under the wire last January. Milo and the landlord who owned the flat above ultimately agreed on sum of £5,000 . If the lease had gone lower than eighty years, the sum would have escalated by at least £1,125.
Last month we were approach by Ms H Ricardo , who bought a first floor apartment in Horfield in October 2009. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparable premises in Horfield with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £45 billed annually. The lease finished in 2100. Given that there were 74 years left we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 plus fees.
Dr W Alexander purchased a studio apartment in Horfield in January 2000. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Comparative flats in Horfield with an extended lease were valued around £248,000. The average amount of ground rent was £65 collected annually. The lease came to a finish in 2089. Having 63 years left we estimated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 not including expenses.