The only way is down when it comes to Ouston lease terms. Ouston leaseholds that have a lease term shorter than eighty years will de-escalate in market price even faster, and the cost to extend your lease will go up.
Leasehold properties in Ouston with more than one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you better control over the value of your Ouston leasehold, as your property will be more valuable and marketable 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.
Last year Archie, came dangerously near to the eighty-year threshold with the lease on his two bedroom apartment in Ouston. In buying his property two decades ago, the lease term was of little interest. Luckily, he noticed he would soon be paying way over the odds for a lease extension. Archie arranged for a lease extension just under the wire in April. Archie and the freeholder via the managing agents subsequently agreed on sum of £5,000 . If he not met the deadline, the sum would have increased by a minimum £975.
In 2012 we were called by Mr and Mrs. C Ward who, having purchased a basement flat in Ouston in May 2006. The dilemma was if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Comparable flats in Ouston with 100 year plus lease were worth £200,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ran out on 22 June 2102. Given that there were 77 years unexpired we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.
Ms G Rodríguez purchased a garden apartment in Ouston in April 2008. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Comparative flats in Ouston with 100 year plus lease were in the region of £260,200. The mid-range ground rent payable was £65 billed annually. The lease came to a finish on 13 June 2091. Having 66 years outstanding we approximated the premium to the landlord to extend the lease to be between £16,200 and £18,600 exclusive of professional charges.