The nearer a domestic lease in Horwich nears to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, over 100 years to run then this decrease may be fractional however there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Horwich will meet the qualifying criteria; that being said a conveyancing solicitor will be able to advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Horwich,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 experience and the close ties they enjoy with Horwich valuers.
Ali owned a high value flat in Horwich on the market with a lease of a few days over fifty eight years remaining. Ali on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of an increased rent to £200 yearly. Ordinarily, ground rent would not be payable on a lease extension were Ali to exercise his statutory right. Ali obtained expert legal guidance and was able to make a more informed decision and handle with the matter and sell the flat.
In 2013 we were approached by Dr H López who, having took over the lease of a garden flat in Horwich in September 2001. The dilemma was if we could estimate the price would be to extend the lease by 90 years. Identical properties in Horwich with 100 year plus lease were valued about £189,000. The average amount of ground rent was £55 invoiced quarterly. The lease ended in 2079. Considering the 53 years remaining we approximated the premium to the freeholder to extend the lease to be within £28,500 and £33,000 not including professional charges.
In 2013 we were phoned by Mr and Mrs. V Wright who, having took over the lease of a purpose-built apartment in Horwich in April 2006. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative homes in Horwich with a long lease were worth £290,000. The average amount of ground rent was £45 billed monthly. The lease concluded in 2099. Having 73 years left we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 plus expenses.