The re-sale value of a leasehold property in Ossett depends on how long the lease has remaining. If it is close to or fewer than 80 years you should envisage problems on re-sale, so it is advisable to arrange for a lease extension ahead of buying. It is preferable to commence the lease extension process when the lease still has 82 years to run so that a lease extension can be addressed well before the 80 year threshold. Current legislation enables Ossett qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Ossett with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| 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. |
| Godiva Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with handle Ossett 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.
After protracted correspondence with the landlord of her ground floor flat in Ossett, Elizabeth initiated the lease extension process just as the lease was approaching the all-important 80-year deadline. The lease extension completed in July 2010. The freeholder’s fees were negotiated to about 450 pounds.
In 2011 we were e-mailed by Dr C Pérez who, having was assigned a lease of a basement apartment in Ossett in February 2004. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Identical premises in Ossett with a long lease were worth £227,800. The mid-range ground rent payable was £45 collected quarterly. The lease came to a finish on 6 April 2091. Taking into account 65 years left we estimated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 not including costs.
Mr and Mrs. C Fournier moved into a one bedroom flat in Ossett in February 2000. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparative premises in Ossett with 100 year plus lease were worth £275,000. The mid-range ground rent payable was £55 invoiced monthly. The lease elapsed in 2102. Having 76 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.