As the the remaining lease term of a Ollerton residential lease decreases so does its value and therefore the value of your property. If the residual term has, more than 100 years to run then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should consider extending sooner as opposed to later. Many flat owners in Ollerton will qualify for this right; nevertheless a lawyer will be able to confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service will provide you increased control over the value of your Ollerton leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Mason, started to get close to the eighty-year mark with the lease on his garden flat in Ollerton. Having purchased his property two decades ago, the lease term was of no interest. As luck would have it, he noticed he needed to take action soon on a lease extension. Mason extended the lease just under the wire in August. Mason and the freeholder in the end settled on the final figure of £5,000 . If the lease had slid lower than 80 years, the premium would have gone up by a minimum £900.
Mr and Mrs. B Thomas acquired a basement apartment in Ollerton in September 2006. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparative residencies in Ollerton with 100 year plus lease were in the region of £200,000. The mid-range ground rent payable was £50 billed quarterly. The lease elapsed in 2103. Given that there were 77 years outstanding we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of professional charges.
Last year we were phoned by Dr Daisy Nguyen , who took over the lease of a garden apartment in Ollerton in April 2003. The question was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Comparative residencies in Ollerton with 100 year plus lease were worth £260,200. The mid-range ground rent payable was £65 billed quarterly. The lease elapsed in 2092. Having 66 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £16,200 and £18,600 exclusive of professional charges.