Chances are that where you own a flat in Horsforth you actually own a long leasehold interest over your property
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| Halifax | Minimum 70 years from the date 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. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
The conveyancing solicitors that we work with handle Horsforth 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.
During the course of the last few months Sebastian, came perilously close to the 80-year mark with the lease on his leasehold apartment in Horsforth. In buying his property two decades ago, the lease term was of minimal importance. Thankfully, he became aware that he would soon be paying way over the odds for a lease extension. Sebastian was able to extend his lease just in the nick of time last July. Sebastian and the landlord who owned the flat above subsequently settled on a premium of £6,000 . If he failed to meet the deadline, the price would have become more exhorbitant by a minimum £1,000.
Ms Emma Ward bought a one bedroom apartment in Horsforth in July 1995. The dilemma was if we could estimate the premium would likely be for a 90 year extension to my lease. Identical residencies in Horsforth with an extended lease were valued around £227,800. The average amount of ground rent was £45 invoiced quarterly. The lease came to a finish in 2090. Given that there were 65 years outstanding we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 exclusive of expenses.
Last Winter we were approach by Mr Nathaniel Norbert , who owned a garden flat in Horsforth in October 2003. We are asked if we could estimate the price would be for a 90 year lease extension. Comparative homes in Horsforth with an extended lease were valued around £275,000. The average ground rent payable was £55 billed quarterly. The lease came to a finish on 14 September 2101. Taking into account 76 years left we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of fees.