Horsford leases on residential properties are gradually losing value. if your lease has approximately ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease drops under eighty years - otherwise a higher premium will be payable. Flat owners in Horsford will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In certain situations you may not qualify. There are also strict timetables and steps to follow once the process has started so it’s wise to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Horsford,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Horsford valuers.
After lengthy negotiations with the freeholder of her one bedroom flat in Horsford, Jordan initiated the lease extension process just as her lease was approaching the crucial 80-year deadline. The transaction was finalised in June 2008. The landlord’s fees were kept to an absolute minimum.
Ms Chelsea Thomas took over the lease of a one bedroom apartment in Horsford in March 1995. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by 90 years. Comparable premises in Horsford with 100 year plus lease were worth £270,000. The average amount of ground rent was £65 billed per annum. The lease expired in 2094. Given that there were 68 years left we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.
Last June we were contacted by Mr T Lambert , who took over the lease of a purpose-built apartment in Horsford in August 1998. The question was if we could approximate the premium would be to extend the lease by ninety years. Identical flats in Horsford with an extended lease were worth £208,600. The average amount of ground rent was £60 billed every twelve months. The lease concluded on 11 June 2083. Taking into account 57 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £30,400 and £35,200 not including expenses.