It’s a harsh truth that a Horwich residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Horwich property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term slips below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Horwich will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold properties in Horwich with over 100 years unexpired on the lease are often referred to as ‘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 reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Chelsea Building Society | |
| Godiva Mortgages | |
| Halifax | |
| Leeds Building Society |
The conveyancing solicitors that we work with handle Horwich lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Rory was the the leasehold proprietor of a studio apartment in Horwich being marketed with a lease of fraction over 59 years left. Rory informally spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Rory to exercise his statutory right. Rory procured expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.
Ms Hollie Martinez was assigned a lease of a purpose-built apartment in Horwich in May 2011. We are asked if we could estimate the compensation to the landlord could be for a ninety year extension to my lease. Identical residencies in Horwich with 100 year plus lease were in the region of £280,000. The average ground rent payable was £45 billed monthly. The lease came to a finish on 3 July 2096. Having 70 years unexpired we estimated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of expenses.
Last Spring we were approach by Mr Michael Morris , who bought a newly refurbished flat in Horwich in April 1998. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by an additional years. Comparable homes in Horwich with 100 year plus lease were valued around £225,800. The mid-range ground rent payable was £60 invoiced quarterly. The lease came to a finish in 2086. Having 60 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £25,700 and £29,600 not including costs.