The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Ormskirk may extend the lease for a further ninety years under Leasehold Reform legislation. Do think carefully before delaying your Ormskirk lease extension. Postponing that expense today simply increases the amount you will eventually have to pay for a lease extension.
It is conventional wisdom that a property with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years remaining, the premises will be worth the same as a freehold for decades to come.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service gives you better control over the value of your Ormskirk leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last Summer Sam, came critically near to the eighty-year threshold with the lease on his garden apartment in Ormskirk. In buying his property 19 years previously, the length of the lease was of no importance. by good luck, it dawned on him that he needed to take action soon on Extending the lease. Sam extended the lease just under the wire last August. Sam and the freeholder ultimately agreed on an amount of £6,000 . If the lease had dropped to less than 80 years, the price would have increased by a minimum £850.
Mr and Mrs. H Bertrand bought a basement apartment in Ormskirk in October 2007. The dilemma was if we could estimate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar residencies in Ormskirk with a long lease were worth £191,000. The mid-range amount of ground rent was £65 billed per annum. The lease elapsed in 2083. Taking into account 58 years unexpired we approximated the premium to the freeholder for the lease extension to be within £23,800 and £27,400 plus professional charges.
In 2011 we were contacted by Dr Harriet Khan who, having was assigned a lease of a first floor flat in Ormskirk in May 2004. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar properties in Ormskirk with an extended lease were worth £250,000. The mid-range amount of ground rent was £50 billed per annum. The lease expired on 9 July 2094. Taking into account 69 years outstanding we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.