As the the remaining lease term of a Ollerton residential lease lessens so does its value and therefore the value of your property. If the lease has, in excess of 100 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Ollerton will meet the qualifying criteria; however a conveyancing solicitor can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Ollerton with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you enhanced control over the value of your Ollerton leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Gabriel owned a conversion flat in Ollerton on the market with a lease of fraction over sixty years remaining. Gabriel on an informal basis approached his freeholder 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 new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Mr and Mrs. L Thomas moved into a ground floor flat in Ollerton in March 1995. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Similar homes in Ollerton with an extended lease were in the region of £198,800. The mid-range ground rent payable was £55 billed yearly. The lease lapsed on 18 July 2080. Having 55 years left we calculated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus fees.
Mr and Mrs. G Robinson acquired a one bedroom apartment in Ollerton in September 2000. We are asked if we could estimate the price would be to extend the lease by 90 years. Similar properties in Ollerton with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £50 billed annually. The lease ended on 13 October 2100. Considering the 75 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.