The re-sale value of a leasehold property in Okehampton is impacted by how many years the lease has remaining. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that all matters can be finalised in advance of the eighty year threshold. Leasehold Reform legislation enables Okehampton qualifying lessees to a 90 year extension added to their residual lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The intention of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
Irrespective of whether you are a tenant or a landlord in Okehampton,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Okehampton valuers.
Two years ago Teddy, started to get close to the 80-year mark with the lease on his garden apartment in Okehampton. Having bought his home two decades ago, the length of the lease was of no bearing. Fortunately, he recognised he needed to take action soon on Extending the lease. Teddy extended the lease just in the nick of time in July. Teddy and the landlord who owned the flat above in the end agreed on the final figure of £5,000 . If the lease had dipped to less than eighty years, the price would have escalated by a minimum £850.
In 2013 we were approached by Ms Y Roux who, having purchased a ground floor apartment in Okehampton in June 2004. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year extension to my lease. Similar residencies in Okehampton with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 collected yearly. The lease elapsed on 2 June 2094. Given that there were 69 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.
Last Summer we were phoned by Dr Arthur Lewis , who moved into a one bedroom apartment in Okehampton in August 2004. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparative residencies in Okehampton with an extended lease were valued about £290,000. The mid-range ground rent payable was £60 invoiced every twelve months. The lease terminated on 28 August 2105. Given that there were 80 years left we approximated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 exclusive of fees.