Ollerton leases on domestic deteriorating in value. if your lease has in the region of 90 years unexpired, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Ollerton will mostly qualify for a lease extension; however it’s a good idea to check with a lawyer to check your eligibility. In some circumstances you may not qualify. There are prescribed timetables and formalities to comply with once the process has started so it’s prudent to be guided by a conveyancing solicitor during the process.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with procure Ollerton 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 conveyancer we work with provide it.
Freddie was the the leasehold owner of a 2 bedroom apartment in Ollerton on the market with a lease of a few days over 61 years outstanding. Freddie on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Freddie to invoke his statutory right. Freddie obtained expert advice and secured an acceptable deal informally and sell the property.
Mrs Shannon Sánchez bought a one bedroom apartment in Ollerton in April 2000. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Identical homes in Ollerton with an extended lease were valued about £280,000. The average amount of ground rent was £45 billed annually. The lease concluded on 1 January 2095. Considering the 70 years unexpired we estimated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of legals.
In 2011 we were called by Mr Charlie Mitchell who, having acquired a purpose-built apartment in Ollerton in October 1996. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by a further 90 years. Comparable flats in Ollerton with a long lease were in the region of £218,400. The mid-range amount of ground rent was £60 invoiced per annum. The lease ended in 2084. Taking into account 59 years remaining we calculated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 plus costs.