Okehampton leases on domestic properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the current lease dips below eighty years - otherwise a higher premium will be due. Leasehold owners in Okehampton will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm your eligibility. In some circumstances you may not qualify. There are also strict timetables and formalities to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Okehampton 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 conveyancing solicitor we work with provide it.
Half a year ago Connor, started to get near to the 80-year threshold with the lease on his leasehold flat in Okehampton. Having purchased his property two decades ago, the length of the lease was of no concern. by good luck, he recognised he would soon be paying way over the odds for Extending the lease. Connor extended the lease just under the wire in September. Connor and the freeholder ultimately agreed on sum of £5,000 . If the lease had fallen lower than eighty years, the premium would have increased by a minimum £900.
Last year we were called by Mr and Mrs. J Allen , who was assigned a lease of a studio apartment in Okehampton in October 2008. We are asked if we could approximate the compensation to the landlord could be to extend the lease by an additional years. Comparable premises in Okehampton with a long lease were valued about £275,000. The average ground rent payable was £55 collected monthly. The lease lapsed in 2101. Having 76 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
Dr Natasha Simon moved into a first floor flat in Okehampton in April 2009. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Comparative properties in Okehampton with 100 year plus lease were in the region of £176,200. The average ground rent payable was £65 invoiced per annum. The lease elapsed on 16 July 2081. Taking into account 56 years outstanding we calculated the premium to the landlord for the lease extension to be within £29,500 and £34,000 plus costs.