Chances are that if you own a flat in Okehampton you actually own a long leasehold interest over your property
Leasehold residencies in Okehampton with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Okehampton can be a difficult process. We recommend you procure 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 Okehampton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Felix was the the leasehold owner of a studio flat in Okehampton being marketed with a lease of a little over sixty years left. Felix informally contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Felix to exercise his statutory right. Felix obtained expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Last Winter we were contacted by Mr and Mrs. L Laurent , who purchased a one bedroom apartment in Okehampton in May 1996. The question was if we could approximate the premium could be to extend the lease by 90 years. Identical homes in Okehampton with a long lease were in the region of £183,600. The average ground rent payable was £65 collected per annum. The lease ran out in 2082. Given that there were 57 years unexpired we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of fees.
Mr and Mrs. B Ramírez purchased a ground floor apartment in Okehampton in July 2007. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Similar properties in Okehampton with a long lease were worth £250,000. The mid-range ground rent payable was £50 collected quarterly. The lease ended on 27 April 2093. Having 68 years unexpired we estimated the premium to the landlord for the lease extension to be within £10,500 and £12,000 plus legals.