Olney leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start thinking about a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the current lease drops under eighty years - otherwise a higher amount will be due. Flat owners in Olney will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain circumstances you may not be entitled. There are also strict timetables and steps to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 Olney can be a difficult process. We recommend you get guidance from a lawyer and surveyor 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 in-depth market knowledge procuring Olney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful discussions with the landlord of her ground floor apartment in Olney, Poppy started the lease extension process as the 80 year threshold was swiftly advancing. The transaction was concluded in January 2013. The landlord’s fees were kept to an absolute minimum.
Mr and Mrs. G Roux took over the lease of a recently refurbished flat in Olney in August 1997. We are asked if we could approximate the premium could be to extend the lease by ninety years. Similar flats in Olney with a long lease were worth £250,000. The mid-range amount of ground rent was £50 collected per annum. The lease elapsed on 26 April 2094. Taking into account 69 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus expenses.
Last month we were called by Mr and Mrs. V Rodríguez , who was assigned a lease of a first floor flat in Olney in May 1999. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparative homes in Olney with an extended lease were in the region of £285,000. The mid-range ground rent payable was £55 billed yearly. The lease lapsed in 2105. Given that there were 80 years left we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of expenses.