For those whose Ormskirk flat is held on a long lease, the message is clear – if nothing is done, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Ormskirk can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Ormskirk lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In recent months Leon, came precariously close to the eighty-year mark with the lease on his two bedroom apartment in Ormskirk. In buying his property two decades ago, the lease term was of little significance. Luckily, he noticed he needed to take steps soon on Extending the lease. Leon arranged for a lease extension at the eleventh hour last September. Leon and the landlord who owned the flat above subsequently agreed on the final figure of £5,000 . If the lease had dropped below eighty years, the price would have become more exhorbitant by a minimum £1,025.
Last Autumn we were approach by Dr K Girard , who purchased a basement apartment in Ormskirk in June 2003. The question was if we could approximate the price would be for a ninety year lease extension. Comparative premises in Ormskirk with 100 year plus lease were worth £176,200. The average amount of ground rent was £65 invoiced quarterly. The lease came to a finish in 2082. Given that there were 56 years outstanding we approximated the premium to the freeholder to extend the lease to be between £29,500 and £34,000 exclusive of legals.
Mr and Mrs. W Watson completed a one bedroom flat in Ormskirk in January 2009. The dilemma was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Similar residencies in Ormskirk with an extended lease were in the region of £242,600. The average ground rent payable was £45 billed yearly. The lease ended in 2093. Considering the 67 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £11,400 and £13,200 not including fees.