The rule of thumb is, all other factors being equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Ormskirk can extend the lease for a further ninety years under the 1993 Leasehold Reform Act. Do give careful consideration before delaying your Ormskirk lease extension. Postponing that expense today simply increases the premium you will eventually be required to pay to extend the lease.
Leasehold premises in Ormskirk with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth 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 maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Chelsea 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. |
| 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. |
Engaging our service will provide you better control over the value of your Ormskirk leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Michael was the the leasehold proprietor of a high value apartment in Ormskirk being marketed with a lease of fraction over 59 years unexpired. Michael on an informal basis contacted his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £200 yearly. No ground rent would be due on a lease extension were Michael to invoke his statutory right. Michael procured expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2013 we were called by Mrs F Lee who, having bought a basement apartment in Ormskirk in October 2008. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Comparative flats in Ormskirk with 100 year plus lease were valued about £260,000. The mid-range amount of ground rent was £50 invoiced monthly. The lease came to a finish in 2098. Having 72 years unexpired we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of fees.
Dr T Taylor bought a one bedroom flat in Ormskirk in August 1995. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable premises in Ormskirk with a long lease were in the region of £256,600. The mid-range amount of ground rent was £60 invoiced annually. The lease expired in 2078. Having 52 years outstanding we calculated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 not including costs.