Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Ormskirk. Clearly, the period of lease remaining reduces over time. This may slip by relatively unnoticed when the flat or house has to be disposed of or refinanced. The fewer the years remaining the less it is worth and the more it will cost to procure a lease extension. Qualifying long lease owners in Ormskirk have the legal entitlement to extend the lease for an additional ninety years in accordance with the 1993 Leasehold Reform Act. You should give careful deliberation before putting off your Ormskirk lease extension. Putting off that expense now likely increases the price you will eventually incur for a lease extension
Leasehold residencies in Ormskirk with more than one hundred 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 freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
The conveyancing solicitors that we work with procure Ormskirk lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancer we work with provide it.
14 months ago Charlie, started to get near to the eighty-year mark with the lease on his one bedroom flat in Ormskirk. Having purchased his flat two decades ago, the length of the lease was of no relevance. by good luck, he recognised he would imminently be paying an inflated amount for Extending the lease. Charlie was able to extend his lease at the eleventh hour last May. Charlie and the landlord who owned the flat above ultimately agreed on the final figure of £5,000 . If he failed to meet the deadline, the premium would have increased by at least £975.
Dr R González purchased a first floor apartment in Ormskirk in October 2004. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by a further 90 years. Comparative premises in Ormskirk with 100 year plus lease were in the region of £173,800. The mid-range amount of ground rent was £60 billed annually. The lease elapsed in 2080. Considering the 55 years unexpired we approximated the premium to the freeholder to extend the lease to be within £31,400 and £36,200 not including costs.
Dr A Reed acquired a recently refurbished apartment in Ormskirk in January 2006. The question was if we could approximate the premium could be for a ninety year extension to my lease. Identical homes in Ormskirk with 100 year plus lease were in the region of £235,200. The mid-range ground rent payable was £45 billed every twelve months. The lease ended on 16 November 2091. Taking into account 66 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.