There is no doubt about it a leasehold flat or house in Horsford is a wasting asset as a result of the shortening lease. Where the residual term has, in excess of 100 years remaining then this decrease may be of little impact nevertheless there will become a stage when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. The majority of flat owners in Horsford will qualify for this right; that being said a lawyer can advise if you are eligible 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.
Leasehold properties in Horsford with over one hundred years unexpired 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 circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
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.
Trailing protracted discussions with the landlord of her first floor apartment in Horsford, Tia commenced the lease extension process just as the lease was approaching the all-important eighty-year mark. The transaction was concluded in August 2008. The landlord’s charges were restricted to a tad over five hundred pounds.
In 2013 we were approached by Mrs H Simon who, having acquired a one bedroom apartment in Horsford in October 2003. The question was if we could estimate the premium would likely be for a 90 year lease extension. Similar flats in Horsford with 100 year plus lease were in the region of £295,000. The mid-range ground rent payable was £45 invoiced monthly. The lease ran out on 12 April 2100. Having 74 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.
In 2014 we were phoned by Mr Jacob Brown who, having bought a purpose-built apartment in Horsford in October 2002. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Comparable flats in Horsford with 100 year plus lease were valued about £250,400. The average amount of ground rent was £65 invoiced every twelve months. The lease elapsed on 6 April 2090. Considering the 64 years unexpired we approximated the compensation to the landlord for the lease extension to be within £19,000 and £22,000 plus professional charges.