Unfortunately that a Ombersley residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the loss of value being disguised by increases in the Ombersley property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. If lease term dips under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Ombersley will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold premises in Ombersley with more than 100 years left on the lease are sometimes 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 upside in purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Ombersley,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ombersley valuers.
18 months ago Connor, came critically near to the 80-year mark with the lease on his one bedroom flat in Ombersley. Having bought his flat 18 years ago, the lease term was of minimal importance. Thankfully, he became aware that he would imminently be paying way over the odds for Extending the lease. Connor arranged for a lease extension at the eleventh hour last January. Connor and the freeholder via the managing agents ultimately agreed on an amount of £5,000 . If the lease had dropped to less than eighty years, the price would have gone up by at least £950.
Last Summer we were approach by Dr Jennifer Green , who acquired a purpose-built apartment in Ombersley in April 2007. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Comparative residencies in Ombersley with 100 year plus lease were worth £218,400. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease ran out in 2084. Given that there were 59 years left we approximated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 not including fees.
In 2010 we were called by Mr and Mrs. W Petit who, having took over the lease of a studio apartment in Ombersley in January 2001. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Ombersley with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected per annum. The lease ran out in 2104. Given that there were 79 years outstanding we approximated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 exclusive of professional charges.