Olney leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. Legislation has been in place for sometime now allowing qualifying Olney residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Olney you should investigate if your lease has between 70 and 90 years left. There are good reasons why a Olney flat owner with a lease having around 80 years left should take steps to ensure that a lease extension is put in place without delay
Leasehold residencies in Olney with in excess of 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify 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. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Olney,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Olney valuers.
Riley was the the leasehold proprietor of a high value flat in Olney on the market with a lease of just over 59 years left. Riley on an informal basis contacted his landlord a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Riley to invoke his statutory right. Riley obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the flat.
Last Spring we were phoned by Dr Harvey Díaz , who owned a garden flat in Olney in April 2007. The question was if we could estimate the price would likely be for a 90 year lease extension. Identical flats in Olney with an extended lease were in the region of £166,400. The mid-range amount of ground rent was £60 collected quarterly. The lease concluded in 2080. Considering the 54 years left we approximated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 not including costs.
In 2014 we were contacted by Dr Harriet Martin who, having bought a one bedroom apartment in Olney in January 2006. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year extension to my lease. Identical premises in Olney with an extended lease were valued around £232,800. The mid-range amount of ground rent was £45 collected every twelve months. The lease came to a finish in 2091. Taking into account 65 years left we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including legals.