When it comes to residential leasehold premises in Otford, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Anyone in Otford with a lease approaching 81 years unexpired should seriously consider extending it sooner as opposed to later. Once a lease has under eighty years remaining, under the current statute the freeholder can calculate and charge a larger amount, based on a technical computation, known as “marriage value” which is due.
Leasehold premises in Otford with over 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 |
The conveyancing solicitors that we work with procure Otford 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 lawyer we work with provide it.
Off the back of protracted correspondence with the landlord of her two bedroom apartment in Otford, Rhiannon started the lease extension process just as her lease was nearing the crucial 80-year deadline. The legal work was finalised in February 2011. The landlord’s costs were negotiated to a tad over 450 GBP.
Last Spring we were phoned by Mrs J François , who bought a purpose-built flat in Otford in July 1995. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Similar properties in Otford with an extended lease were in the region of £173,800. The average amount of ground rent was £60 invoiced quarterly. The lease concluded on 22 August 2080. Having 55 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of legals.
Last Summer we were e-mailed by Dr Y Moore , who was assigned a lease of a ground floor apartment in Otford in May 2001. We are asked if we could estimate the premium would be for a 90 year lease extension. Comparable properties in Otford with an extended lease were in the region of £235,200. The average amount of ground rent was £45 invoiced yearly. The lease finished on 10 October 2091. Given that there were 66 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of expenses.