Chances are that if you own a flat in Hornsea you actually own a long leasehold interest over your property
Leasehold residencies in Hornsea with in excess of 100 years remaining 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 home. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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 |
Irrespective of whether you are a tenant or a freeholder in Hornsea,the lease extension lawyers 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 Hornsea valuers.
Two years ago David, started to get near to the 80-year mark with the lease on his ground floor apartment in Hornsea. Having bought his home two decades ago, the lease term was of little bearing. Fortunately, he realised he would soon be paying way over the odds for a lease extension. David arranged for a lease extension just under the wire in January. David and the freeholder ultimately agreed on a premium of £6,000 . If he failed to meet the deadline, the premium would have become more exhorbitant by a minimum £1,150.
Last Summer we were approach by Mrs Isabelle González , who moved into a garden apartment in Hornsea in August 2007. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparative homes in Hornsea with a long lease were in the region of £261,600. The average ground rent payable was £60 billed quarterly. The lease concluded on 15 April 2078. Considering the 52 years unexpired we calculated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of fees.
In 2014 we were contacted by Mrs Natasha Gunderson who, having took over the lease of a one bedroom apartment in Hornsea in November 2001. We are asked if we could estimate the premium would likely be to prolong the lease by 90 years. Comparative flats in Hornsea with a long lease were valued about £218,000. The average amount of ground rent was £45 billed per annum. The lease lapsed in 2089. Considering the 63 years unexpired we calculated the premium to the freeholder for the lease extension to be within £17,100 and £19,800 not including costs.