The market value of Horsforth leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is below than 80 years
It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 45 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Leeds Building Society | |
| Nationwide Building Society | |
| Santander | |
| Yorkshire Building Society |
Using our service will provide you increased control over the value of your Horsforth leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Harvey was the the leasehold owner of a studio apartment in Horsforth being sold with a lease of just over sixty years outstanding. Harvey informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 per annum. Ordinarily, ground rent would not be payable on a lease extension were Harvey to invoke his statutory right. Harvey obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
In 2011 we were e-mailed by Mr C González who, having owned a recently refurbished flat in Horsforth in August 1999. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Comparable flats in Horsforth with 100 year plus lease were in the region of £242,600. The average amount of ground rent was £45 billed yearly. The lease lapsed in 2093. Considering the 67 years unexpired we calculated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of expenses.
Ms H White purchased a studio apartment in Horsforth in October 1996. We are asked if we could approximate the price would be to prolong the lease by an additional years. Similar properties in Horsforth with 100 year plus lease were in the region of £280,000. The average amount of ground rent was £55 billed monthly. The lease concluded in 2104. Taking into account 78 years unexpired we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.