Ormskirk leases on domestic properties are gradually losing value. if your lease has approximately 90 years left, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for your lease extension to be in place before the term of the current lease drops below 80 years - otherwise a higher amount will be due. Leasehold owners in Ormskirk will usually qualify for a lease extension; however it’s a good idea to check with a lawyer to check if you qualify. In certain cases you may not be entitled. There are prescribed timetables and steps to follow once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
Leasehold premises in Ormskirk with over 100 years remaining on the lease are sometimes 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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| 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. |
| 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. |
| 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 will provide you enhanced control over the value of your Ormskirk leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Ollie, came very close to the 80-year mark with the lease on his two bedroom flat in Ormskirk. In buying his flat twenty years previously, the unexpired term was of little importance. Thankfully, he became aware that he would imminently be paying way over the odds for a lease extension. Ollie arranged for a lease extension just under the wire last January. Ollie and the landlord subsequently agreed on an amount of £6,000 . If the lease had descended lower than 80 years, the figure would have become more costly by a minimum £1,075.
Dr G Morris completed a newly refurbished flat in Ormskirk in July 2002. We are asked if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Ormskirk with a long lease were valued about £246,800. The average amount of ground rent was £60 collected yearly. The lease concluded on 19 June 2075. Given that there were 50 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £44,700 and £51,600 exclusive of fees.
In 2012 we were phoned by Mr Alex Morel who, having was assigned a lease of a studio flat in Ormskirk in March 2012. The question was if we could shed any light on how much (roughly) premium would be for a ninety year lease extension. Identical homes in Ormskirk with an extended lease were valued around £208,200. The mid-range amount of ground rent was £65 billed yearly. The lease came to a finish on 2 August 2086. Considering the 61 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 exclusive of expenses.