Ormesby leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Ormesby residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in Ormesby you should investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under 80 years, the cost of any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold premises in Ormesby with more than 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Godiva Mortgages | |
| The Mortgage Works | |
| Royal Bank of Scotland | |
| Yorkshire Building Society |
Irrespective of whether you are a tenant or a landlord in Ormesby,the lease extension lawyers that we work with will always be happy 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.
In recent months Alfie, came seriously close to the 80-year mark with the lease on his leasehold flat in Ormesby. Having bought his property twenty years ago, the lease term was of minimal bearing. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Alfie was able to extend his lease at the eleventh hour in July. Alfie and the landlord who owned the flat above subsequently settled on a premium of £5,500 . If he had missed the deadline, the figure would have gone up by a minimum £925.
Mr Ali Simon owned a one bedroom flat in Ormesby in April 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Similar premises in Ormesby with 100 year plus lease were valued around £200,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ran out on 26 June 2104. Given that there were 78 years remaining we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus costs.
Mr Aiden Thompson was assigned a lease of a ground floor flat in Ormesby in September 1997. The dilemma was if we could approximate the premium would likely be for a ninety year lease extension. Comparative residencies in Ormesby with 100 year plus lease were worth £267,600. The average ground rent payable was £65 collected every twelve months. The lease expired in 2093. Taking into account 67 years unexpired we approximated the compensation to the landlord for the lease extension to be within £14,300 and £16,400 plus expenses.