Horsford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Horsford residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Horsford you should see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold residencies in Horsford with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Using our service will provide you increased control over the value of your Horsford leasehold, as your property will be more valuable and marketable in relation to the 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.
Trailing unsuccessful discussions with the freeholder of her leasehold flat in Horsford, Catherine initiated the lease extension process as the eighty year threshold was quickly nearing. The transaction completed in September 2008. The landlord’s costs were kept to an absolute minimum.
Ms D Mason took over the lease of a first floor apartment in Horsford in September 2006. We are asked if we could approximate the premium could be to extend the lease by a further 90 years. Comparable residencies in Horsford with an extended lease were worth £200,000. The average ground rent payable was £50 collected per annum. The lease finished in 2102. Considering the 77 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of legals.
Last Winter we were phoned by Mrs Mia Watson , who acquired a newly refurbished flat in Horsford in July 2001. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year extension to my lease. Identical homes in Horsford with an extended lease were in the region of £265,200. The average amount of ground rent was £65 billed annually. The lease ended on 25 May 2091. Considering the 66 years outstanding we approximated the premium to the freeholder to extend the lease to be within £15,200 and £17,600 not including legals.