The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Okehampton may extend the lease for an additional ninety years in accordance with legislation. Do think carefully before delaying your Okehampton lease extension. Postponing that expense today simply increases the premium you will ultimately be required to pay for a lease extension.
Leasehold properties in Okehampton with more than one hundred years unexpired 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 upside in purchasing the freehold unless savings on ground rent and service charges merit 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Okehampton leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Finn was the the leasehold owner of a 2 bedroom flat in Okehampton being marketed with a lease of fraction over sixty years outstanding. Finn on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were Finn to invoke his statutory right. Finn obtained expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the property.
In 2011 we were contacted by Dr D Clark who, having moved into a basement apartment in Okehampton in May 1998. We are asked if we could approximate the price would be for a 90 year lease extension. Similar premises in Okehampton with an extended lease were valued around £242,600. The mid-range amount of ground rent was £45 billed per annum. The lease terminated on 21 October 2093. Considering the 67 years left we approximated the compensation to the landlord to extend the lease to be within £11,400 and £13,200 plus expenses.
Last Summer we were contacted by Mr and Mrs. A Roux , who moved into a purpose-built flat in Okehampton in January 2009. The question was if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Comparable homes in Okehampton with an extended lease were worth £280,000. The average ground rent payable was £55 collected per annum. The lease ran out in 2104. Considering the 78 years left we estimated the premium to the freeholder to extend the lease to be within £13,300 and £15,400 not including fees.