When it comes to residential leasehold premises in Otford, you are actually purchasing a right to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Anyone in Otford with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. When a lease has under 80 years remaining, under the relevant legislation the landlord is entitled to calculate and levy a greater amount, assessed on a technical calculation, known as “marriage value” which is payable.
Leasehold properties in Otford with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Halifax | Minimum 70 years from the date 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Otford,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Otford valuers.
Max was the the leasehold owner of a conversion apartment in Otford on the market with a lease of a little over 59 years left. Max informally contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Max to invoke his statutory right. Max obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Dr Kayleigh García acquired a one bedroom apartment in Otford in March 1998. We are asked if we could approximate the premium would be to extend the lease by an additional years. Comparable residencies in Otford with 100 year plus lease were worth £210,600. The mid-range amount of ground rent was £45 billed per annum. The lease ran out in 2088. Taking into account 62 years unexpired we estimated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of costs.
In 2014 we were approached by Mrs Lily Baker who, having took over the lease of a garden flat in Otford in August 2005. The question was if we could estimate the premium could be for a 90 year lease extension. Identical homes in Otford with a long lease were worth £265,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease concluded on 11 August 2099. Given that there were 73 years unexpired we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 not including costs.