Horncastle leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Horncastle residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Horncastle you really ought to see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Horncastle with more than one hundred years outstanding on the lease are often 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 upside in purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Leeds Building Society | |
| Santander | |
| The Mortgage Works |
Lease extensions in Horncastle can be a difficult process. We recommend you procure professional help from a conveyancer and valuer 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 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.
In 2014 Connor, came very near to the 80-year mark with the lease on his studio apartment in Horncastle. Having bought his flat 18 years previously, the unexpired term was of no interest. As luck would have it, he noticed he needed to take action soon on a lease extension. Connor arranged for a lease extension just in the nick of time in May. Connor and the freeholder via the managing agents subsequently settled on a premium of £5,000 . If the lease had fallen below 80 years, the premium would have escalated by a minimum £1,100.
In 2014 we were contacted by Ms Victoria Thomas who, having completed a one bedroom flat in Horncastle in July 2010. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Horncastle with a long lease were in the region of £270,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease end date was on 24 January 2101. Considering the 75 years left we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.
Ms W Sharif owned a one bedroom flat in Horncastle in July 2004. The dilemma was if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparable residencies in Horncastle with 100 year plus lease were worth £173,800. The mid-range amount of ground rent was £65 invoiced per annum. The lease concluded on 9 June 2081. Given that there were 55 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 exclusive of legals.