The re-sale value of a leasehold property in Horley is impacted by how long the lease has left to run. If it is close to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension before purchasing. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that a lease extension can be addressed well before the eighty year threshold. Current legislation entitles Horley qualifying lessees to obtain a lease extension of ninety years on top of the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Horley with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Chelsea Building Society | |
| Leeds Building Society | |
| Nationwide Building Society |
Irrespective of whether you are a tenant or a landlord in Horley,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Horley valuers.
Connor was the the leasehold proprietor of a studio apartment in Horley being sold with a lease of a little over 72 years outstanding. Connor informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Connor to exercise his statutory right. Connor procured expert legal guidance and secured an acceptable resolution informally and sell the property.
Mr Aaron Allen acquired a first floor apartment in Horley in July 2012. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Identical flats in Horley with an extended lease were in the region of £186,000. The mid-range ground rent payable was £65 collected annually. The lease terminated in 2084. Considering the 58 years remaining we estimated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 not including fees.
In 2009 we were approached by Mr and Mrs. P Rodríguez who, having acquired a basement flat in Horley in August 2011. We are asked if we could approximate the premium would be to prolong the lease by an additional years. Comparable properties in Horley with 100 year plus lease were valued around £250,000. The average ground rent payable was £50 invoiced every twelve months. The lease elapsed in 2094. Given that there were 68 years unexpired we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.