Horwich leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. It is the case that most Horwich tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Horwich you must check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
Leasehold properties in Horwich with over 100 years outstanding 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure 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 lawyer we work with provide it.
Reuben owned a conversion apartment in Horwich on the market with a lease of just over 72 years outstanding. Reuben informally contacted his landlord a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Reuben to invoke his statutory right. Reuben procured expert legal guidance and secured satisfactory resolution without going to tribunal and readily saleable.
Mr and Mrs. O Rose moved into a first floor apartment in Horwich in June 2006. We are asked if we could approximate the price could be for a 90 year extension to my lease. Similar homes in Horwich with an extended lease were in the region of £257,800. The average ground rent payable was £65 billed annually. The lease elapsed on 22 September 2089. Taking into account 65 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus fees.
Mr and Mrs. E Flores was assigned a lease of a ground floor apartment in Horwich in November 2002. We are asked if we could approximate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable premises in Horwich with a long lease were valued about £191,400. The mid-range ground rent payable was £55 invoiced per annum. The lease expiry date was on 15 August 2078. Given that there were 54 years left we approximated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 plus fees.