As the length of the unexpired term of a Ormesby residential lease decreases so does its value and therefore the value of your property. Where the residual term has, over 99 years remaining then this decrease may be of little impact however there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease sooner as opposed to later. Many flat owners in Ormesby will meet the qualifying criteria; nevertheless a lawyer can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Ormesby with over one hundred years remaining on the lease are often regarded as a ‘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 purchasing the freehold 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | 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. |
| 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. |
The lawyers that we work with handle Ormesby 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 lawyer we work with provide it.
In recent months Jude, came critically near to the 80-year threshold with the lease on his two bedroom flat in Ormesby. Having bought his flat two decades ago, the lease term was of little bearing. Luckily, it dawned on him that he needed to take action soon on Extending the lease. Jude was able to extend his lease at the eleventh hour last August. Jude and the landlord ultimately agreed on sum of £6,000 . If he not met the deadline, the premium would have escalated by a minimum £1,100.
Last month we were e-mailed by Dr U Rivera , who completed a ground floor flat in Ormesby in March 1995. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Identical residencies in Ormesby with 100 year plus lease were worth £290,000. The average ground rent payable was £45 collected every twelve months. The lease concluded on 21 April 2099. Considering the 73 years unexpired we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus fees.
Mr and Mrs. U Lefebvre owned a one bedroom flat in Ormesby in January 2003. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Identical homes in Ormesby with 100 year plus lease were in the region of £240,600. The mid-range ground rent payable was £60 collected annually. The lease finished on 15 July 2088. Considering the 62 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus fees.