The re-sale value of a leasehold property in Ossett depends on how many years the lease has remaining. If it is close to or less than eighty years you should anticipate difficulties on re-sale, so it is recommended to arrange for the lease to be extended ahead of buying. It is preferable to start the lease extension process when the lease still has 82 years to run so that all matters can be finalised well before the eighty year mark. Statute enables Ossett qualifying lessees to obtain a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Lease extensions in Ossett can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 procuring Ossett lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of unsuccessful negotiations with the freeholder of her studio apartment in Ossett, Jade commenced the lease extension process as the 80 year deadline was fast coming. The lease extension was concluded in July 2014. The freeholder’s costs were kept to an absolute minimum.
In 2014 we were approached by Mrs Charlotte Bonnet who, having purchased a purpose-built flat in Ossett in October 1999. We are asked if we could estimate the premium would likely be to prolong the lease by an additional years. Comparative residencies in Ossett with an extended lease were valued about £168,800. The mid-range amount of ground rent was £60 billed quarterly. The lease concluded in 2081. Considering the 55 years left we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 not including professional charges.
Last Autumn we were e-mailed by Dr Leon Bonnet , who was assigned a lease of a garden flat in Ossett in November 1998. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be for a ninety year lease extension. Similar properties in Ossett with a long lease were valued about £235,200. The mid-range ground rent payable was £45 collected per annum. The lease expired in 2092. Given that there were 66 years as a residual term we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.