The re-sale value of a leasehold property in Horsham is impacted by how long the lease has remaining. If it is close to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is ideal to start the lease extension process when the lease still has 82 years to run so that a lease extension can be concluded prior to the eighty year mark. Statute enables Horsham qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Horsham with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | |
| Leeds Building Society | |
| National Westminster Bank | |
| Skipton Building Society | |
| TSB |
Lease extensions in Horsham can be a difficult process. We recommend you procure guidance from a conveyancing solicitor and surveyor 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 in-depth market knowledge dealing with Horsham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful discussions with the freeholder of her one bedroom apartment in Horsham, Morgan started the lease extension process just as the lease was nearing the critical eighty-year deadline. The transaction was concluded in October 2006. The landlord’s fees were restricted to less than five hundred GBP.
Dr Isaac Jones bought a one bedroom flat in Horsham in September 1998. The question was if we could estimate the price would be to prolong the lease by ninety years. Comparable premises in Horsham with 100 year plus lease were in the region of £208,200. The mid-range amount of ground rent was £65 collected every twelve months. The lease lapsed on 23 November 2087. Taking into account 61 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £20,000 and £23,000 not including costs.
In 2011 we were called by Mrs Daisy Mason who, having took over the lease of a ground floor flat in Horsham in February 2005. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparative flats in Horsham with an extended lease were valued around £260,000. The average amount of ground rent was £50 invoiced per annum. The lease lapsed on 22 September 2098. Considering the 72 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.