When it comes to domestic leasehold property in Okehampton, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider a lease extension sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly when there are fewer than 80 years remaining. Anyone in Okehampton with a lease approaching 81 years left should seriously think of extending it as soon as possible. When the lease term has under 80 years outstanding, under the current statute the freeholder can calculate and charge a greater premium, based on a technical multiplication, known as “marriage value” which is payable.
Leasehold properties in Okehampton with more than 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 circumstances there is often little to be gained by 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 |
Lease extensions in Okehampton can be a difficult process. We recommend you secure professional help from a lawyer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Okehampton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Thomas, came very close to the 80-year threshold with the lease on his ground floor apartment in Okehampton. Having purchased his flat 19 years previously, the length of the lease was of minimal significance. As luck would have it, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Thomas extended the lease at the eleventh hour in July. Thomas and the freeholder subsequently agreed on the final figure of £5,500 . If the lease had descended below eighty years, the premium would have gone up by a minimum £950.
Last year we were e-mailed by Ms H Fournier , who moved into a ground floor flat in Okehampton in October 1996. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative premises in Okehampton with a long lease were worth £254,200. The mid-range amount of ground rent was £60 billed every twelve months. The lease ran out on 1 June 2075. Having 51 years as a residual term we approximated the premium to the landlord for the lease extension to be between £43,700 and £50,600 not including legals.
Mr and Mrs. U Dupont completed a one bedroom apartment in Okehampton in October 2005. The dilemma was if we could approximate the premium would likely be to prolong the lease by an additional years. Comparative homes in Okehampton with an extended lease were worth £210,600. The average amount of ground rent was £45 invoiced monthly. The lease lapsed in 2086. Having 62 years left we approximated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 not including professional charges.