Olney leases on domestic properties are gradually losing value. Where your lease has approximately 90 years unexpired, you should start considering the need for a lease extension. If lease term is less than 80 years, you will then have to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Olney will usually qualify for a lease extension; however a solicitor will check if you qualify. In some circumstances you may not qualify. There are prescribed deadlines and formalities to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Olney can be a difficult process. We recommend you secure professional help from a lawyer and valuer with experience in this area.
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 in-depth market knowledge dealing with Olney lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the landlord of her garden flat in Olney, Emma commenced the lease extension process as the 80 year deadline was quickly coming. The lease extension completed in January 2006. The landlord’s fees were kept to an absolute minimum.
Last Autumn we were called by Ms Aimee Williams , who was assigned a lease of a basement apartment in Olney in August 2001. We are asked if we could approximate the price could be for a ninety year extension to my lease. Comparable homes in Olney with a long lease were worth £265,000. The mid-range amount of ground rent was £50 invoiced quarterly. The lease concluded in 2099. Having 73 years remaining we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 plus professional charges.
Mr and Mrs. O Murphy completed a newly refurbished apartment in Olney in June 2008. We are asked if we could estimate the price could be to extend the lease by ninety years. Comparable residencies in Olney with an extended lease were in the region of £264,000. The average amount of ground rent was £60 collected per annum. The lease expired on 14 September 2079. Taking into account 53 years outstanding we estimated the premium to the freeholder to extend the lease to be between £37,100 and £42,800 exclusive of costs.