The closer a residential lease in Horley gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, beyond 100 years remaining then this decrease may be fractional that being said there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should consider extending sooner than later. Most flat owners in Horley will meet the qualifying criteria; however a lawyer can advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Horley can be a difficult process. We recommend you get professional help from a lawyer and surveyor with experience in this area.
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 procuring Horley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Harrison owned a studio apartment in Horley being sold with a lease of fraction over 59 years unexpired. Harrison on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Harrison to invoke his statutory right. Harrison obtained expert legal guidance and secured an acceptable resolution informally and ending up with a market value flat.
Mr and Mrs. A Ali was assigned a lease of a purpose-built flat in Horley in May 2000. The dilemma was if we could approximate the price could be for a 90 year lease extension. Comparable flats in Horley with a long lease were valued about £200,800. The mid-range amount of ground rent was £65 billed every twelve months. The lease concluded in 2085. Taking into account 60 years left we estimated the premium to the landlord for the lease extension to be within £20,900 and £24,200 plus fees.
In 2014 we were contacted by Dr Hunter Lefebvre who, having purchased a first floor apartment in Horley in February 2006. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical flats in Horley with 100 year plus lease were in the region of £255,000. The average amount of ground rent was £50 invoiced annually. The lease came to a finish on 4 February 2096. Having 71 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus fees.