Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Ormesby. Inevitably, the length of lease remaining reduces over time. This may pass by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more expensive it will be to procure a lease extension. Qualifying leaseholders in Ormesby have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Do give due consideration before delaying your Ormesby lease extension. Holding off the cost now only increases the price you will ultimately incur to extend your lease
It is generally considered that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Ormesby,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Ormesby valuers.
Subsequent to protracted discussions with the landlord of her ground floor apartment in Ormesby, Emily started the lease extension process as the eighty year threshold was swiftly nearing. The transaction was concluded in February 2013. The landlord’s charges were kept to an absolute minimum.
In 2013 we were approached by Mr and Mrs. T Michel who, having bought a first floor flat in Ormesby in June 2010. The question was if we could estimate the price would likely be for a ninety year lease extension. Comparative properties in Ormesby with a long lease were valued around £210,000. The average ground rent payable was £50 invoiced per annum. The lease expiry date was on 13 January 2105. Given that there were 80 years outstanding we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus expenses.
In 2009 we were approached by Mrs Ellie Hernández who, having took over the lease of a basement apartment in Ormesby in August 2007. The question was if we could estimate the price would likely be to extend the lease by an additional years. Identical homes in Ormesby with an extended lease were valued around £275,000. The average amount of ground rent was £45 billed yearly. The lease end date was in 2094. Considering the 69 years outstanding we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 exclusive of fees.