When it comes to domestic leasehold property in Hornsea, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive particularly once there are less than eighty years remaining. Anyone in Hornsea with a lease approaching 81 years left should seriously think of extending it without delay. Once a lease has fewer than eighty years remaining, under the current legislation the landlord is entitled to calculate and demand a greater amount, based on a technical computation, known as “marriage value” which is due.
Leasehold premises in Hornsea with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate 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. |
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective 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 in-depth market knowledge and the close ties they enjoy with Hornsea valuers.
Rory owned a conversion flat in Hornsea being sold with a lease of fraction over fifty eight years outstanding. Rory informally approached his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Rory to invoke his statutory right. Rory procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2009 we were approached by Mr Joseph Moore who, having owned a ground floor apartment in Hornsea in November 2006. The question was if we could estimate the premium could be for a ninety year extension to my lease. Identical residencies in Hornsea with a long lease were in the region of £215,600. The mid-range ground rent payable was £45 billed per annum. The lease came to a finish in 2088. Given that there were 62 years unexpired we estimated the compensation to the freeholder for the lease extension to be within £18,100 and £20,800 plus costs.
Last Spring we were phoned by Mrs H Khan , who took over the lease of a one bedroom apartment in Hornsea in August 2004. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative flats in Hornsea with 100 year plus lease were valued about £265,000. The average ground rent payable was £50 invoiced yearly. The lease came to a finish in 2099. Given that there were 73 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including legals.