Hornsea leases on residential properties are gradually diminishing in 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. Where you are a leasehold owner in Hornsea you must check if your lease has between 70 and ninety years remaining. There are good reasons why a Hornsea leaseholder with a lease having around eighty years remaining should take steps to make sure that a lease extension is put in place without delay
Leasehold premises in Hornsea with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
Engaging our service will provide you increased control over the value of your Hornsea leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to lengthy correspondence with the freeholder of her first floor apartment in Hornsea, Katie commenced the lease extension process as the eighty year mark was rapidly nearing. The transaction completed in October 2009. The landlord’s fees were negotiated to approximately six hundred GBP.
In 2011 we were contacted by Dr George Scott who, having took over the lease of a garden apartment in Hornsea in September 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Identical homes in Hornsea with 100 year plus lease were worth £181,200. The average amount of ground rent was £65 invoiced every twelve months. The lease terminated on 19 May 2082. Taking into account 56 years unexpired we approximated the premium to the landlord to extend the lease to be between £29,500 and £34,000 plus legals.
Last Summer we were called by Ms W Garcia , who bought a newly refurbished flat in Hornsea in November 2006. We are asked if we could approximate the price would be to prolong the lease by an additional years. Identical properties in Hornsea with an extended lease were valued about £242,600. The mid-range amount of ground rent was £45 invoiced quarterly. The lease lapsed on 17 February 2093. Taking into account 67 years left we estimated the premium to the landlord for the lease extension to be within £11,400 and £13,200 exclusive of fees.