Horsham leases on residential properties are gradually losing value. if your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Leasehold owners in Horsham will mostly qualify for a lease extension; however a solicitor will check your eligibility. In some circumstances you may not be entitled. There are also strict timetables and steps to comply with once the process has commenced so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Horsham with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Horsham,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Horsham valuers.
Following lengthy discussions with the landlord of her purpose-built apartment in Horsham, Jodie started the lease extension process just as her lease was approaching the all-important eighty-year deadline. The legal work was finalised in June 2015. The landlord’s costs were kept to an absolute minimum.
Mrs O Scott completed a ground floor flat in Horsham in March 2007. We are asked if we could approximate the price would be to extend the lease by 90 years. Comparable properties in Horsham with an extended lease were in the region of £183,600. The average amount of ground rent was £65 billed yearly. The lease expired in 2082. Considering the 57 years left we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 plus costs.
In 2014 we were contacted by Dr A White who, having acquired a basement flat in Horsham in September 1996. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by 90 years. Comparative premises in Horsham with a long lease were worth £242,600. The average ground rent payable was £45 billed monthly. The lease came to a finish in 2092. Given that there were 67 years unexpired we approximated the premium to the freeholder for the lease extension to be between £11,400 and £13,200 plus fees.