The only way is down when it comes to Hornsea lease terms. Hornsea flats that have a lease term fewer than eighty years will drop in value at a rapid rate, and the cost of extending your lease will go up.
Leasehold premises in Hornsea with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
Regardless of whether you are a tenant or a landlord in Hornsea,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hornsea valuers.
Following unsuccessful negotiations with the freeholder of her garden apartment in Hornsea, Alice started the lease extension process as the eighty year threshold was fast approaching. The legal work was finalised in September 2008. The freeholder’s costs were negotiated to less than 450 pounds.
Mr and Mrs. M Flores acquired a studio flat in Hornsea in February 2012. The question was if we could shed any light on how much (roughly) price could be for a 90 year lease extension. Similar homes in Hornsea with an extended lease were valued about £246,800. The mid-range ground rent payable was £60 collected per annum. The lease finished in 2075. Given that there were 50 years remaining we approximated the premium to the freeholder for the lease extension to be between £44,700 and £51,600 plus fees.
In 2011 we were approached by Mr and Mrs. E Rogers who, having was assigned a lease of a first floor flat in Hornsea in August 2002. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical premises in Hornsea with 100 year plus lease were worth £203,200. The average ground rent payable was £65 billed annually. The lease end date was in 2086. Considering the 61 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 plus legals.