It’s an underpublicised truth that a Ormskirk residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Ormskirk property prices.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below eighty years - otherwise a higher amount will be due. The majority of leasehold owners in Ormskirk will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| Godiva Mortgages | |
| Royal Bank of Scotland |
Engaging our service will provide you increased control over the value of your Ormskirk leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Nathaniel owned a high value flat in Ormskirk being sold with a lease of a little over 59 years outstanding. Nathaniel informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 per annum. No ground rent would be payable on a lease extension were Nathaniel to invoke his statutory right. Nathaniel procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
In 2009 we were approached by Mrs A Leroy who, having was assigned a lease of a one bedroom apartment in Ormskirk in July 1998. The dilemma was if we could estimate the premium would likely be for a ninety year lease extension. Comparable properties in Ormskirk with an extended lease were valued around £256,600. The mid-range amount of ground rent was £60 invoiced monthly. The lease elapsed in 2078. Having 52 years as a residual term we approximated the compensation to the landlord for the lease extension to be between £39,000 and £45,000 not including fees.
In 2010 we were approached by Dr H Edwards who, having owned a first floor flat in Ormskirk in July 2004. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Similar properties in Ormskirk with an extended lease were in the region of £218,000. The mid-range ground rent payable was £45 collected every twelve months. The lease ran out in 2089. Having 63 years outstanding we approximated the compensation to the landlord to extend the lease to be between £17,100 and £19,800 plus fees.