Horwich leases on residential properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the existing lease falls lower than 80 years - otherwise a higher premium will be payable. Leasehold owners in Horwich will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some situations you may not qualify. There are also strict timetables and steps to follow once the process has started so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Horwich with over 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 upside in buying the freehold unless savings on ground rent and estate 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. |
| Birmingham Midshires | 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service gives you better control over the value of your Horwich leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy correspondence with the landlord of her studio flat in Horwich, Tia started the lease extension process as the 80 year mark was swiftly nearing. The legal work was concluded in July 2006. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were approached by Mr and Mrs. V David who, having acquired a basement apartment in Horwich in September 2007. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparative flats in Horwich with an extended lease were in the region of £200,000. The average ground rent payable was £50 billed yearly. The lease came to a finish on 2 January 2103. Having 77 years outstanding we calculated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
Dr Connor Bonnet acquired a ground floor apartment in Horwich in June 2002. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Identical premises in Horwich with a long lease were in the region of £265,200. The mid-range amount of ground rent was £65 collected per annum. The lease elapsed on 27 May 2092. Taking into account 66 years left we approximated the premium to the freeholder for the lease extension to be between £15,200 and £17,600 not including expenses.