Owning a apartment usually means owning a lease of the property, which has a set term of years. The lease will usually be granted for a fixed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Okehampton. Inevitably, the length of lease left shortens as time goes by. This may pass by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The shorter the lease the less it is worth and the more it will cost to extend the lease. Eligible leaseholders in Okehampton have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. Do give careful attention before putting off your Okehampton lease extension. Putting off that expense now likely increases the price you will eventually have to pay for a lease extension
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
Lease extensions in Okehampton can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor with experience in lease extensions.
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 October Aarav, started to get close to the 80-year threshold with the lease on his two bedroom apartment in Okehampton. Having purchased his flat two decades ago, the unexpired term was of little bearing. Thankfully, he realised he needed to take action soon on Extending the lease. Aarav was able to extend his lease just under the wire in January. Aarav and the freeholder in the end settled on an amount of £6,000 . If he not met the deadline, the premium would have gone up by at least £950.
Mr and Mrs. N Martínez owned a first floor apartment in Okehampton in October 2002. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year lease extension. Similar flats in Okehampton with a long lease were valued around £246,800. The average ground rent payable was £60 billed yearly. The lease termination date was on 21 August 2076. Taking into account 50 years remaining we calculated the compensation to the landlord for the lease extension to be within £44,700 and £51,600 plus professional charges.
Last Christmas we were e-mailed by Mr and Mrs. L Miller , who owned a one bedroom apartment in Okehampton in July 2000. The question was if we could approximate the premium would be to extend the lease by a further 90 years. Comparable residencies in Okehampton with a long lease were worth £208,200. The mid-range ground rent payable was £65 billed yearly. The lease lapsed in 2087. Considering the 61 years left we approximated the premium to the freeholder to extend the lease to be within £20,000 and £23,000 not including legals.