Why you should commence your Ossett lease extension

Why you should commence your Ossett lease extension today:

A Ossett lease depreciates with the years remaining on the lease.

The nearer a domestic lease in Ossett gets to zero years unexpired, the the greater the reduction in the value of the property. Where the lease has, in excess of one hundred years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Ossett will meet the qualifying criteria; nevertheless a lawyer can confirm whether you are eligible to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.

An extended lease has roughly the same value as a freehold

It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.

Lending institutions may decide not to lend on a short lease

The trend since 2008 has been for banks to tighten lending criteria generally - this has extended to the property over which the mortgage is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically mortgage companies were content with twenty years plus the term of the loan - typically fifty year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

Get in touch with one of our Ossett lease extension solicitors or enfranchisement solicitors

Regardless of whether you are a tenant or a landlord in Ossett,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Ossett valuers.

Ossett Lease Extension Case Studies:

Rory, Ossett, West Yorkshire

Two years ago Rory, came dangerously near to the 80-year threshold with the lease on his one bedroom apartment in Ossett. In buying his flat two decades ago, the length of the lease was of no significance. As luck would have it, he noticed he needed to take action soon on a lease extension. Rory was able to extend his lease just ahead of time in September. Rory and the landlord eventually agreed on an amount of £5,000 . If he failed to meet the deadline, the premium would have escalated by a minimum £875.

Ossett case:

In 2014 we were phoned by Dr N Kelly who, having purchased a studio apartment in Ossett in March 2012. The question was if we could shed any light on how much (approximately) premium would likely be for a ninety year lease extension. Similar homes in Ossett with a long lease were worth £246,800. The average amount of ground rent was £60 invoiced quarterly. The lease lapsed on 19 August 2076. Having 50 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £44,700 and £51,600 plus costs.

Ossett case:

Last Christmas we were e-mailed by Dr U Miller , who completed a studio flat in Ossett in August 2004. We are asked if we could approximate the premium would be to extend the lease by an additional years. Similar residencies in Ossett with 100 year plus lease were valued about £203,200. The average amount of ground rent was £65 collected monthly. The lease finished in 2087. Having 61 years left we calculated the compensation to the landlord to extend the lease to be within £19,000 and £22,000 plus costs.