There is no doubt about it a leasehold flat or house in Horwich is a wasting asset as a result of the shortening lease. If the lease has, over 99 years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner rather than later. Many flat owners in Horwich will meet the qualifying criteria; however a conveyancer can advise if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold residencies in Horwich with more than one hundred years outstanding on the lease are often 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 buying the freehold unless savings on ground rent and maintenance 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Horwich,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Horwich valuers.
Trailing protracted negotiations with the freeholder of her basement flat in Horwich, Catherine initiated the lease extension process as the 80 year threshold was rapidly approaching. The legal work was finalised in January 2007. The freeholder’s costs were kept to an absolute minimum.
Mrs Morgan Clark moved into a studio apartment in Horwich in July 2009. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Comparative flats in Horwich with a long lease were valued around £205,000. The average amount of ground rent was £50 invoiced quarterly. The lease came to a finish on 11 May 2104. Having 79 years left we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including professional charges.
In 2012 we were called by Dr Melissa Roux who, having acquired a garden flat in Horwich in May 1995. We are asked if we could estimate the premium would be for a ninety year lease extension. Identical residencies in Horwich with a long lease were worth £275,000. The average amount of ground rent was £65 collected every twelve months. The lease came to a finish on 2 November 2093. Having 68 years outstanding we estimated the premium to the landlord to extend the lease to be between £13,300 and £15,400 plus legals.