Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will normally be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Hornsea. Inevitably, the length of lease left shortens over time. This is often overlooked and only raises itself as an issue when the property has to be sold or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Hornsea have the right to extend the lease for a further ninety years under statute. Do give careful deliberation before delaying your Hornsea lease extension. Putting off the cost now likely increases the price you will eventually have to pay to extend your lease
Leasehold properties in Hornsea with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
Lease extensions in Hornsea can be a difficult process. We recommend you secure 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 Hornsea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Tommy, came precariously close to the 80-year threshold with the lease on his purpose- built flat in Hornsea. In buying his flat two decades ago, the unexpired term was of no importance. Luckily, he noticed he would soon be paying way over the odds for a lease extension. Tommy was able to extend his lease just ahead of time in June. Tommy and the freeholder eventually agreed on sum of £5,000 . If the lease had fallen lower than eighty years, the figure would have increased by at least £1,075.
Last Christmas we were phoned by Dr Connor Reed , who owned a garden flat in Hornsea in November 1999. The question was if we could shed any light on how much (approximately) price would likely be for a ninety year lease extension. Comparable properties in Hornsea with a long lease were valued around £275,000. The average amount of ground rent was £55 invoiced annually. The lease finished on 9 April 2103. Taking into account 77 years left we calculated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 not including expenses.
In 2013 we were called by Dr W Johnson who, having moved into a one bedroom flat in Hornsea in July 1997. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Hornsea with a long lease were in the region of £181,200. The average ground rent payable was £65 collected per annum. The lease ran out in 2082. Given that there were 56 years outstanding we calculated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of costs.