The market value of Ogmore By Sea leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the remaining term is less than 80 years
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 Ogmore By Sea can be a difficult process. We recommend you obtain guidance from a lawyer and valuer 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 a wealth of experience dealing with Ogmore By Sea lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Jamie, started to get close to the eighty-year mark with the lease on his studio flat in Ogmore By Sea. Having bought his flat 18 years ago, the unexpired term was of no significance. Luckily, he became aware that he needed to take steps soon on Extending the lease. Jamie extended the lease just under the wire last June. Jamie and the freeholder via the management company ultimately settled on a premium of £5,500 . If he not met the deadline, the premium would have increased by a minimum £1,025.
Last Autumn we were called by Dr Ibrahim Jones , who bought a basement apartment in Ogmore By Sea in March 2012. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Ogmore By Sea with a long lease were worth £191,400. The average ground rent payable was £55 invoiced annually. The lease finished on 22 August 2080. Having 54 years left we calculated the premium to the freeholder for the lease extension to be within £34,200 and £39,600 not including fees.
Mr and Mrs. G Brooks owned a one bedroom flat in Ogmore By Sea in August 2009. The dilemma was if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Similar flats in Ogmore By Sea with an extended lease were in the region of £295,000. The average amount of ground rent was £45 billed every twelve months. The lease ran out in 2100. Given that there were 74 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of fees.