Horwich leases on domestic deteriorating in value. if your lease has approximately ninety 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 dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Horwich will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check your eligibility. In certain cases you may not qualify. There are prescribed timetables and procedures to comply with once the process has commenced so it’s best to be guided by a lawyer during the process.
Leasehold residencies in Horwich with in excess of one hundred years remaining 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 home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit 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. |
| 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Regardless of whether you are a tenant or a freeholder in Horwich,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Horwich valuers.
Last October Harry, started to get close to the eighty-year threshold with the lease on his studio flat in Horwich. Having purchased his property 19 years ago, the length of the lease was of little relevance. Fortunately, he recognised he needed to take action soon on Extending the lease. Harry was able to extend his lease just ahead of time in September. Harry and the freeholder in the end settled on sum of £6,000 . If he failed to meet the deadline, the amount would have escalated by at least £875.
Last Christmas we were phoned by Mr and Mrs. F Harris , who owned a purpose-built flat in Horwich in June 1999. The dilemma was if we could approximate the price would likely be for a 90 year lease extension. Comparable residencies in Horwich with an extended lease were valued around £181,600. The mid-range amount of ground rent was £55 collected per annum. The lease terminated in 2078. Having 52 years outstanding we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 plus expenses.
Last Winter we were phoned by Mr Eliot Patel , who took over the lease of a one bedroom apartment in Horwich in July 1996. We are asked if we could estimate the premium would likely be for a 90 year lease extension. Similar properties in Horwich with an extended lease were in the region of £285,000. The average ground rent payable was £45 billed per annum. The lease finished in 2098. Having 72 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including legals.