For those whose Ossett flat is held on a long lease, our message is clear – if no remedial action is taken, your property will eventually revert to your landlord, leaving you empty-handed. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease.
Leasehold properties in Ossett with over 100 years unexpired 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 to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Ossett leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Arthur, came perilously near to the 80-year mark with the lease on his ground floor apartment in Ossett. Having purchased his flat two decades ago, the lease term was of minimal interest. Fortunately, it dawned on him that he would soon be paying an escalated premium for Extending the lease. Arthur extended the lease at the eleventh hour last April. Arthur and the landlord ultimately agreed on a premium of £6,000 . If the lease had descended to less than 80 years, the price would have become more exhorbitant by at least £1,075.
Last Spring we were called by Mr and Mrs. S Thomas , who owned a one bedroom flat in Ossett in February 2007. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by an additional years. Comparative residencies in Ossett with an extended lease were worth £200,800. The mid-range amount of ground rent was £65 invoiced per annum. The lease ended on 8 October 2085. Taking into account 60 years left we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of legals.
Dr C Taylor owned a garden apartment in Ossett in June 2009. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by 90 years. Comparative properties in Ossett with 100 year plus lease were valued around £255,000. The average amount of ground rent was £50 invoiced monthly. The lease expiry date was in 2096. Given that there were 71 years unexpired we calculated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 plus expenses.