Ogmore Vale leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Ogmore Vale residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Ogmore Vale you must investigate if your lease has between seventy and ninety years left. In particular once the remaining lease term slips under eighty years, the premium due on any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
Leasehold properties in Ogmore Vale with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.
| 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. |
| 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. |
| 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 Vale can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor 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 procuring Ogmore Vale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Caleb, started to get near to the eighty-year threshold with the lease on his first floor apartment in Ogmore Vale. Having purchased his property 18 years ago, the unexpired term was of no concern. Fortunately, it dawned on him that he would imminently be paying way over the odds for Extending the lease. Caleb was able to extend his lease at the eleventh hour in March. Caleb and the freeholder in the end agreed on a premium of £5,000 . If he not met the deadline, the price would have gone up by at least £1,025.
In 2009 we were contacted by Dr G Walker who, having took over the lease of a one bedroom flat in Ogmore Vale in February 2010. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by a further 90 years. Comparative homes in Ogmore Vale with an extended lease were valued around £181,600. The average amount of ground rent was £55 billed annually. The lease lapsed in 2078. Taking into account 52 years left we approximated the premium to the landlord for the lease extension to be within £30,400 and £35,200 exclusive of professional charges.
Last Summer we were approach by Dr Harriet Edwards , who completed a recently refurbished apartment in Ogmore Vale in April 2003. We are asked if we could estimate the compensation to the landlord would be to extend the lease by ninety years. Identical flats in Ogmore Vale with a long lease were in the region of £290,000. The average amount of ground rent was £45 collected yearly. The lease lapsed in 2098. Having 72 years left we estimated the premium to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of costs.