With a domestic leasehold property in Olney, you are actually purchasing a right to reside in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially when there are fewer than 80 years remaining. Residents in Olney with a lease drawing near to 81 years left should seriously think of extending it sooner than later. Once a lease has below 80 years remaining, under the current Act the landlord is entitled to calculate and demand a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Olney with more than 100 years unexpired 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 situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with undertake Olney 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.
Half a year ago Austin, came precariously close to the eighty-year mark with the lease on his purpose- built flat in Olney. Having bought his home 19 years previously, the unexpired term was of minimal bearing. by good luck, he realised he needed to take steps soon on a lease extension. Austin arranged for a lease extension at the eleventh hour in March. Austin and the landlord who owned the flat above ultimately settled on the final figure of £5,500 . If he not met the deadline, the amount would have gone up by a minimum £1,125.
Dr R Parker owned a one bedroom apartment in Olney in January 1999. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Similar flats in Olney with an extended lease were valued around £200,800. The mid-range amount of ground rent was £65 collected yearly. The lease concluded in 2085. Considering the 60 years left we calculated the premium to the freeholder to extend the lease to be within £20,900 and £24,200 not including expenses.
In 2010 we were e-mailed by Mr and Mrs. H Edwards who, having moved into a garden apartment in Olney in January 2000. We are asked if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative homes in Olney with 100 year plus lease were valued around £255,000. The average ground rent payable was £50 billed every twelve months. The lease elapsed on 13 October 2095. Considering the 70 years as a residual term we calculated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of costs.