Unfortunately that a Ossett residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Ossett property prices.Once your lease nears 85ish years, you should start considering a lease extension. If the number of years remaining falls under 80 years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of flat owners in Ossett will be able to extend under the legislation; however a conveyancer will be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
Leasehold premises in Ossett with more than 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake 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.
Trailing protracted discussions with the freeholder of her studio flat in Ossett, Amy commenced the lease extension process just as her lease was approaching the crucial 80-year mark. The legal work was finalised in January 2011. The landlord’s costs were kept to an absolute minimum.
Last year we were called by Dr Harvey Ward , who bought a one bedroom flat in Ossett in May 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable premises in Ossett with a long lease were worth £265,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease came to a finish on 27 June 2100. Considering the 74 years outstanding we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of fees.
In 2012 we were approached by Ms Leah Morgan who, having acquired a purpose-built apartment in Ossett in September 2000. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Identical premises in Ossett with 100 year plus lease were worth £166,400. The mid-range amount of ground rent was £60 billed per annum. The lease came to a finish in 2080. Taking into account 54 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 not including legals.