The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Ossett have the legal entitlement to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your Ossett lease extension. Postponing that expense today simply escalates the amount you will ultimately be required to pay to extend the lease.
It is generally considered that a property with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for many years ahead.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Lease extensions in Ossett can be a difficult process. We recommend you obtain professional help from a conveyancing solicitor and surveyor with experience in this area.
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 Ossett lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted correspondence with the landlord of her purpose-built apartment in Ossett, Emily initiated the lease extension process as the 80 year mark was fast approaching. The lease extension was finalised in April 2013. The landlord’s costs were kept to an absolute minimum.
Last Autumn we were phoned by Mrs H Clarke , who purchased a one bedroom flat in Ossett in May 2007. The dilemma was if we could estimate the premium would be to prolong the lease by an additional years. Identical residencies in Ossett with 100 year plus lease were worth £285,000. The average ground rent payable was £55 billed every twelve months. The lease termination date was in 2104. Taking into account 79 years remaining we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus costs.
In 2012 we were contacted by Mr and Mrs. P Peterson who, having moved into a one bedroom apartment in Ossett in January 2011. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical properties in Ossett with a long lease were valued around £193,400. The mid-range ground rent payable was £65 collected every twelve months. The lease concluded in 2084. Having 59 years as a residual term we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including professional charges.