The market value of a leasehold property in Okehampton is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should expect problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is preferable to commence the process of extending the lease is when the lease still has 82 years to run so that all matters can be addressed prior to the eighty year threshold. Current legislation entitles Okehampton qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Lloyds TSB Scotland | 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 |
| Yorkshire 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. |
Regardless of whether you are a tenant or a freeholder in Okehampton,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Okehampton valuers.
Dexter was the the leasehold proprietor of a 2 bedroom apartment in Okehampton being marketed with a lease of a little over sixty years remaining. Dexter on an informal basis approached his landlord being a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were Dexter to invoke his statutory right. Dexter procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Last year we were called by Dr S Khan , who was assigned a lease of a newly refurbished apartment in Okehampton in August 1997. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable premises in Okehampton with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 invoiced quarterly. The lease elapsed in 2086. Given that there were 60 years as a residual term we calculated the premium to the landlord for the lease extension to be within £20,900 and £24,200 not including fees.
In 2013 we were contacted by Mr and Mrs. W Cooper who, having was assigned a lease of a purpose-built flat in Okehampton in November 2005. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Comparable flats in Okehampton with 100 year plus lease were valued about £260,000. The average amount of ground rent was £50 billed annually. The lease elapsed on 1 January 2097. Considering the 71 years outstanding we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus professional charges.