There is no doubt about it a leasehold property in Ormskirk is a wasting asset as a result of the shortening lease. Where the residual term has, more than 125 years to run then this decrease may be negligible nevertheless there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Ormskirk will qualify for this right; however a conveyancer will be able to confirm whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold premises in Ormskirk with in excess of 100 years remaining on the lease are often 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 to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
Lease extensions in Ormskirk can be a difficult process. We recommend you obtain professional help from a lawyer and valuer 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 dealing with Ormskirk lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Autumn Alex, came seriously close to the eighty-year mark with the lease on his two bedroom apartment in Ormskirk. Having purchased his flat 18 years ago, the lease term was of minimal relevance. Thankfully, it dawned on him that he would soon be paying an inflated amount for a lease extension. Alex was able to extend his lease at the eleventh hour last May. Alex and the landlord eventually settled on a premium of £5,000 . If he failed to meet the deadline, the premium would have escalated by a minimum £1,100.
Mr U Torres purchased a purpose-built apartment in Ormskirk in March 1999. We are asked if we could approximate the premium could be to prolong the lease by an additional years. Comparable flats in Ormskirk with a long lease were valued around £227,800. The average ground rent payable was £45 billed every twelve months. The lease ran out on 22 July 2091. Considering the 65 years outstanding we approximated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.
In 2011 we were called by Dr Kai Campbell who, having owned a basement flat in Ormskirk in April 2009. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparable properties in Ormskirk with an extended lease were worth £275,000. The average ground rent payable was £55 billed every twelve months. The lease expired in 2102. Having 76 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.