The value of Horncastle leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase significantly once the remaining term is less than 80 years
It is generally considered 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 any lease with more than 30 years left, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Horncastle can be a difficult process. We recommend you procure professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
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 in-depth market knowledge dealing with Horncastle lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Sebastian owned a 2 bedroom apartment in Horncastle being marketed with a lease of just over 61 years outstanding. Sebastian on an informal basis spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be due on a lease extension were Sebastian to invoke his statutory right. Sebastian obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Mr and Mrs. J Davis completed a ground floor apartment in Horncastle in August 2002. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Horncastle with an extended lease were worth £255,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease finished in 2096. Taking into account 71 years unexpired we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.
In 2013 we were called by Mr and Mrs. Y Campbell who, having was assigned a lease of a studio apartment in Horncastle in March 1995. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Similar homes in Horncastle with an extended lease were worth £254,200. The average ground rent payable was £60 collected yearly. The lease concluded in 2076. Given that there were 51 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £43,700 and £50,600 plus legals.