Unfortunately that a Okehampton residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Okehampton property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls under 80 years - otherwise a higher amount will be due. Most leasehold owners in Okehampton will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you qualify for an extension. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer throughout the process.
Leasehold premises in Okehampton with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| The Mortgage Works | |
| Royal Bank of Scotland |
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 terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Reuben, started to get near to the 80-year mark with the lease on his garden apartment in Okehampton. In buying his flat twenty years previously, the unexpired term was of minimal bearing. Thankfully, he realised he needed to take action soon on Extending the lease. Reuben arranged for a lease extension at the eleventh hour in June. Reuben and the landlord in the end agreed on sum of £5,000 . If he not met the deadline, the price would have escalated by a minimum £925.
Last Autumn we were e-mailed by Ms Katie Rose , who owned a ground floor apartment in Okehampton in February 2000. The dilemma was if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Identical flats in Okehampton with 100 year plus lease were worth £254,200. The mid-range ground rent payable was £60 invoiced monthly. The lease came to a finish in 2077. Considering the 51 years left we approximated the compensation to the freeholder to extend the lease to be between £43,700 and £50,600 not including professional charges.
Last year we were approach by Mr and Mrs. N Roberts , who took over the lease of a ground floor apartment in Okehampton in April 2006. The dilemma was if we could approximate the price could be to extend the lease by a further 90 years. Comparable properties in Okehampton with a long lease were worth £210,600. The average amount of ground rent was £45 billed monthly. The lease terminated in 2088. Considering the 62 years remaining we estimated the compensation to the landlord to extend the lease to be within £18,100 and £20,800 exclusive of costs.