Unfortunately that a Ogmore By Sea residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the deflation being disguised by increases in the Ogmore By Sea property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining falls under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Ogmore By Sea will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold premises in Ogmore By Sea with over 100 years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 secure professional help from a lawyer and valuer with experience in lease extensions.
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.
Following unsuccessful negotiations with the landlord of her garden flat in Ogmore By Sea, Charlotte started the lease extension process just as her lease was approaching the critical eighty-year deadline. The legal work was finalised in January 2013. The freeholder’s fees were kept to an absolute minimum.
Last Spring we were approach by Ms O Watson , who purchased a first floor flat in Ogmore By Sea in August 2009. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparative homes in Ogmore By Sea with an extended lease were in the region of £280,000. The average amount of ground rent was £45 collected monthly. The lease lapsed in 2095. Having 70 years as a residual term we estimated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus professional charges.
In 2013 we were contacted by Ms Sophia Watson who, having owned a one bedroom apartment in Ogmore By Sea in June 2010. We are asked if we could shed any light on how much (approximately) premium would be to extend the lease by a further 90 years. Comparable premises in Ogmore By Sea with a long lease were worth £218,400. The mid-range amount of ground rent was £60 billed monthly. The lease ran out in 2084. Taking into account 59 years unexpired we approximated the premium to the landlord for the lease extension to be between £27,600 and £31,800 plus costs.