As the length of the unexpired term of a Horsford domestic lease lessens so does its value and therefore the value of your property. If the lease has, more than 99 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner as opposed to later. Many flat owners in Horsford will meet the qualifying criteria; however a conveyancing solicitor can confirm whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Horsford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Following unsuccessful correspondence with the freeholder of her ground floor apartment in Horsford, Megan commenced the lease extension process just as the lease was nearing the all-important 80-year deadline. The legal work was concluded in April 2008. The freeholder’s fees were restricted to under 500 pounds.
Mr N Patel acquired a newly refurbished flat in Horsford in October 2003. We are asked if we could estimate the price would likely be for a ninety year lease extension. Similar premises in Horsford with an extended lease were in the region of £201,200. The average amount of ground rent was £55 invoiced every twelve months. The lease concluded in 2082. Given that there were 56 years as a residual term we approximated the premium to the landlord for the lease extension to be within £31,400 and £36,200 exclusive of costs.
Ms C Edwards moved into a purpose-built apartment in Horsford in July 2000. The question was if we could estimate the price would likely be for a 90 year extension to my lease. Similar properties in Horsford with 100 year plus lease were valued around £300,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ran out in 2102. Given that there were 76 years remaining we estimated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including expenses.