It’s a harsh truth that a Horncastle residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Horncastle property prices.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under 80 years - otherwise a higher premium will be payable. Most flat owners in Horncastle will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor from beginning to end of the formalities.
Leasehold premises in Horncastle with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Santander | |
| Skipton Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
Using our service will provide you better control over the value of your Horncastle leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months William, came very close to the 80-year threshold with the lease on his studio apartment in Horncastle. Having bought his home 18 years ago, the unexpired term was of little relevance. by good luck, he realised he needed to take action soon on a lease extension. William was able to extend his lease just under the wire last August. William and the freeholder via the managing agents subsequently agreed on sum of £6,000 . If he failed to meet the deadline, the premium would have become more costly by at least £975.
In 2010 we were phoned by Mr and Mrs. I Rivera who, having bought a one bedroom apartment in Horncastle in July 1995. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar flats in Horncastle with a long lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease ran out in 2105. Given that there were 79 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.
Mr and Mrs. E Wilson bought a first floor flat in Horncastle in February 2009. The dilemma was if we could approximate the price would be for a 90 year extension to my lease. Identical premises in Horncastle with 100 year plus lease were in the region of £198,400. The average amount of ground rent was £65 billed monthly. The lease concluded in 2085. Considering the 59 years remaining we approximated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus expenses.