The re-sale value of a leasehold property in Ogmore Vale depends on how many years the lease has remaining. If it is near to or fewer than eighty years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension before buying. Ideally one should start the lease extension process when the lease still has 82 years to run so that all matters can be addressed in advance of the eighty year mark. Current legislation entitles Ogmore Vale qualifying lessees to obtain a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The purpose of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
Lease extensions in Ogmore Vale can be a difficult process. We recommend you obtain guidance from a conveyancer 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 Vale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Milo owned a conversion flat in Ogmore Vale on the market with a lease of a little over 61 years outstanding. Milo on an informal basis contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Milo to invoke his statutory right. Milo procured expert advice and secured satisfactory resolution without going to tribunal and readily saleable.
Last Spring we were called by Dr Francesca Bennett , who acquired a one bedroom flat in Ogmore Vale in October 2008. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Identical homes in Ogmore Vale with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease elapsed in 2098. Taking into account 73 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 not including expenses.
Mr and Mrs. D Martin purchased a one bedroom apartment in Ogmore Vale in August 1998. The question was if we could approximate the premium would likely be to extend the lease by a further 90 years. Comparative premises in Ogmore Vale with 100 year plus lease were valued around £240,600. The mid-range amount of ground rent was £60 collected monthly. The lease concluded on 6 January 2087. Given that there were 62 years remaining we calculated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of legals.