Chances are that if you own a flat in Ottery St Mary you actually own a long leasehold interest over your property
It is generally accepted that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 Ottery St Mary can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor 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 Ottery St Mary 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 Gabriel, came perilously close to the eighty-year mark with the lease on his garden apartment in Ottery St Mary. In buying his property two decades ago, the unexpired term was of no bearing. As luck would have it, he noticed he would imminently be paying way over the odds for a lease extension. Gabriel arranged for a lease extension at the eleventh hour in July. Gabriel and the landlord ultimately settled on sum of £5,000 . If the lease had fallen lower than eighty years, the premium would have escalated by a minimum £1,075.
Last Spring we were called by Mr and Mrs. W King , who acquired a basement apartment in Ottery St Mary in November 2002. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable homes in Ottery St Mary with a long lease were valued around £270,000. The average amount of ground rent was £55 invoiced quarterly. The lease expired in 2099. Taking into account 74 years remaining we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.
Mr L François moved into a one bedroom flat in Ottery St Mary in January 2000. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Identical residencies in Ottery St Mary with an extended lease were valued about £166,400. The mid-range ground rent payable was £60 collected yearly. The lease lapsed in 2079. Given that there were 54 years unexpired we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 exclusive of professional charges.