For those whose Horsforth property is held on a long lease, the message is clear – if no remedial action is taken, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension.
Leasehold premises in Horsforth with in excess of one hundred years outstanding on the lease are often regarded as a ‘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 purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Horsforth can be a difficult process. We recommend you procure guidance from a conveyancer and surveyor with experience in this area.
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.
Max owned a high value apartment in Horsforth being sold with a lease of just over sixty years outstanding. Max on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £200 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Max to exercise his statutory right. Max obtained expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
Last year we were approach by Mr Luke Gunderson , who acquired a first floor apartment in Horsforth in June 2004. The dilemma was if we could estimate the price would be to prolong the lease by a further 90 years. Comparative premises in Horsforth with an extended lease were in the region of £260,000. The average amount of ground rent was £50 invoiced per annum. The lease lapsed on 18 November 2098. Having 72 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
In 2010 we were e-mailed by Mrs Emma Allen who, having moved into a purpose-built apartment in Horsforth in May 2007. The dilemma was if we could approximate the premium could be to extend the lease by an additional years. Similar properties in Horsforth with a long lease were valued about £261,600. The mid-range ground rent payable was £60 billed annually. The lease came to a finish in 2078. Considering the 52 years as a residual term we approximated the premium to the freeholder for the lease extension to be between £39,000 and £45,000 not including costs.