The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Ormskirk can extend the lease for an additional 90 years under legislation. Do think carefully before delaying your Ormskirk lease extension. Shelving that expense now simply increases the premium you will ultimately be required to pay for a lease extension.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging 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 wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ben was the the leasehold proprietor of a high value apartment in Ormskirk being sold with a lease of a few days over sixty years outstanding. Ben informally spoke with his landlord being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £100 per annum. No ground rent would be due on a lease extension were Ben to invoke his statutory right. Ben procured expert legal guidance and secured satisfactory resolution informally and readily saleable.
Mr F Jackson purchased a one bedroom apartment in Ormskirk in April 1998. The dilemma was if we could approximate the premium could be to extend the lease by 90 years. Comparative homes in Ormskirk with 100 year plus lease were worth £183,600. The average ground rent payable was £65 billed quarterly. The lease concluded in 2083. Given that there were 57 years remaining we estimated the compensation to the landlord to extend the lease to be within £28,500 and £33,000 not including costs.
In 2012 we were phoned by Dr Freddie Torres who, having was assigned a lease of a basement apartment in Ormskirk in August 1998. The question was if we could approximate the compensation to the landlord could be for a ninety year lease extension. Identical properties in Ormskirk with 100 year plus lease were worth £245,000. The average ground rent payable was £50 collected per annum. The lease expiry date was in 2094. Taking into account 68 years outstanding we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including professional charges.