When it comes to residential leasehold property in North Ockendon, you effectively rent it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than eighty years left. Anyone in North Ockendon with a lease drawing near to 81 years left should seriously consider extending it as soon as possible. Once the lease term has fewer than 80 years left, under the current statute the landlord can calculate and demand a larger amount, based on a technical multiplication, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure North Ockendon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
Last October Cameron, started to get near to the 80-year mark with the lease on his first floor apartment in North Ockendon. In buying his home two decades ago, the length of the lease was of minimal significance. by good luck, he recognised he would imminently be paying an escalated premium for Extending the lease. Cameron arranged for a lease extension just under the wire last September. Cameron and the landlord eventually settled on an amount of £6,000 . If he not met the deadline, the premium would have become more exhorbitant by at least £1,050.
Mr Tyler Morel completed a purpose-built flat in North Ockendon in July 1997. We are asked if we could estimate the price would be to prolong the lease by ninety years. Comparable premises in North Ockendon with a long lease were in the region of £267,600. The average ground rent payable was £65 invoiced monthly. The lease expired on 18 May 2092. Given that there were 67 years outstanding we estimated the premium to the landlord to extend the lease to be within £14,300 and £16,400 plus legals.
An example of a Lease Extension decision for a North Ockendon property is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case affected 1 flat. The unexpired term as at the valuation date was 57.5 years.