As the length of the unexpired term of a Horsforth residential lease decreases so does its value and therefore the value of your property. Where the lease has, over 125 years remaining then this decrease may be of little impact however there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner as opposed to later. Many flat owners in Horsforth will meet the qualifying criteria; however a conveyancer will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Horsforth with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Horsforth can be a difficult process. We recommend you procure professional help from a conveyancer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Horsforth lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Hugo, started to get near to the eighty-year mark with the lease on his leasehold apartment in Horsforth. Having bought his home 19 years ago, the lease term was of minimal importance. Luckily, he noticed he needed to take steps soon on Extending the lease. Hugo extended the lease at the eleventh hour last June. Hugo and the freeholder in the end agreed on a premium of £5,000 . If he failed to meet the deadline, the sum would have become more exhorbitant by at least £850.
Mr and Mrs. V Vincent completed a studio flat in Horsforth in September 2002. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparable flats in Horsforth with an extended lease were worth £255,000. The average ground rent payable was £50 collected per annum. The lease elapsed on 15 November 2096. Having 70 years unexpired we estimated the compensation to the landlord to extend the lease to be within £10,500 and £12,000 exclusive of professional charges.
Last year we were e-mailed by Mr L Moore , who took over the lease of a studio apartment in Horsforth in August 2012. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical residencies in Horsforth with 100 year plus lease were worth £246,800. The mid-range ground rent payable was £60 invoiced monthly. The lease concluded on 11 September 2076. Given that there were 50 years outstanding we approximated the compensation to the landlord for the lease extension to be between £44,700 and £51,600 exclusive of fees.