Hornsea leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Hornsea enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Hornsea you really ought to see if your lease has between 70 and ninety years remaining. There are compelling reasons why a Hornsea flat owner with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you increased control over the value of your Hornsea leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Reuben owned a 2 bedroom flat in Hornsea being sold with a lease of fraction over fifty eight years remaining. Reuben informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Reuben to exercise his statutory right. Reuben obtained expert legal guidance and secured an acceptable deal without going to tribunal and sell the property.
Last September we were called by Dr Georgia Torres , who was assigned a lease of a studio flat in Hornsea in October 2008. We are asked if we could estimate the price could be to prolong the lease by an additional years. Identical residencies in Hornsea with a long lease were worth £193,400. The average ground rent payable was £65 invoiced annually. The lease ended in 2083. Taking into account 59 years remaining we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 not including expenses.
Mr and Mrs. T Hall bought a recently refurbished apartment in Hornsea in August 2004. We are asked if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable residencies in Hornsea with 100 year plus lease were in the region of £250,000. The average amount of ground rent was £50 billed monthly. The lease came to a finish in 2094. Considering the 70 years unexpired we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including expenses.