When it comes to residential leasehold premises in Horwich, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially when there are fewer than 80 years left. Leasehold owners in Horwich with a lease nearing 81 years left should seriously consider extending it as soon as possible. When the lease term has fewer than 80 years remaining, under the relevant Act the landlord is entitled to calculate and charge a larger premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Horwich with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Chelsea Building Society | 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. |
| Coventry Building Society | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire Building Society | 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. |
Using our service gives you enhanced control over the value of your Horwich leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing lengthy correspondence with the landlord of her basement flat in Horwich, Francesca commenced the lease extension process just as the lease was coming close to the all-important 80-year deadline. The transaction completed in May 2014. The landlord’s charges were negotiated to below five hundred pounds.
Mr and Mrs. F Williams purchased a ground floor flat in Horwich in October 2002. The dilemma was if we could estimate the premium would be to extend the lease by an additional years. Identical premises in Horwich with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £65 invoiced yearly. The lease lapsed in 2093. Given that there were 68 years remaining we calculated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including fees.
Mr Finley Reed completed a newly refurbished flat in Horwich in June 2003. We are asked if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable premises in Horwich with an extended lease were worth £213,600. The average ground rent payable was £60 collected yearly. The lease expired on 11 April 2082. Taking into account 57 years unexpired we calculated the premium to the landlord to extend the lease to be between £30,400 and £35,200 not including costs.