Horfield leases on domestic properties are gradually losing value. Where your lease has about ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease dips below 80 years - otherwise a higher amount will be due. Flat owners in Horfield will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain circumstances you may not qualify. There are prescribed deadlines and formalities to follow once the process has commenced so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 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 |
|---|---|
| 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. |
| Lloyds TSB Scotland | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with procure 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 lawyer we work with provide it.
Following unsuccessful correspondence with the freeholder of her first floor flat in Horfield, Abigail started the lease extension process as the eighty year mark was rapidly coming. The lease extension completed in September 2011. The landlord’s costs were kept to an absolute minimum.
Last October we were contacted by Dr D Brooks , who completed a purpose-built apartment in Horfield in June 2002. The dilemma was if we could estimate the price could be for a 90 year extension to my lease. Identical premises in Horfield with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 collected quarterly. The lease terminated on 3 May 2094. Considering the 69 years remaining we estimated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 not including professional charges.
In 2009 we were contacted by Mr and Mrs. N Ward who, having owned a newly refurbished apartment in Horfield in March 2006. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Identical flats in Horfield with an extended lease were in the region of £216,000. The average amount of ground rent was £60 billed yearly. The lease lapsed in 2083. Given that there were 58 years unexpired we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 plus expenses.