There is no doubt about it a leasehold property in Hornsea is a wasting asset as a result of the diminishing lease term. Where the residual term has, in excess of 99 years to run then this decrease may be fractional however there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary logic behind why you should consider extending sooner as opposed to later. The majority of flat owners in Hornsea will qualify for this right; nevertheless a conveyancing solicitor can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 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. |
Regardless of whether you are a tenant or a freeholder in Hornsea,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Hornsea valuers.
John was the the leasehold proprietor of a high value flat in Hornsea being sold with a lease of just over 59 years remaining. John informally spoke with his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were John to invoke his statutory right. John procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Dr V Walker completed a basement flat in Hornsea in April 2010. The question was if we could approximate the price could be for a 90 year extension to my lease. Similar residencies in Hornsea with 100 year plus lease were in the region of £203,200. The average ground rent payable was £65 collected yearly. The lease end date was on 12 February 2087. Given that there were 61 years remaining we calculated the premium to the freeholder to extend the lease to be between £19,000 and £22,000 plus fees.
Last year we were phoned by Mr S Morris , who owned a garden flat in Hornsea in January 2011. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparable homes in Hornsea with 100 year plus lease were in the region of £260,000. The mid-range amount of ground rent was £50 invoiced per annum. The lease ran out in 2097. Considering the 71 years left we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus professional charges.