Otford leases on domestic properties are gradually losing value. if your lease has in the region of 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Otford will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In some situations you may not qualify. There are also strict timetables and procedures to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Otford with over one hundred years left 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 premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| Lloyds TSB Scotland | 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Otford,the lease extension lawyers that we work with will always be prepared 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.
Subsequent to lengthy negotiations with the freeholder of her one bedroom flat in Otford, Amelia started the lease extension process as the eighty year deadline was quickly coming. The transaction was concluded in July 2008. The landlord’s costs were kept to an absolute minimum.
Mr Noah Johnson owned a studio apartment in Otford in March 2005. The question was if we could approximate the price would be for a 90 year extension to my lease. Similar premises in Otford with an extended lease were valued around £265,000. The mid-range amount of ground rent was £55 invoiced yearly. The lease lapsed in 2100. Taking into account 74 years left we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 plus legals.
Last Summer we were called by Mrs Rhiannon Sánchez , who purchased a purpose-built flat in Otford in November 2003. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative premises in Otford with a long lease were in the region of £166,400. The average amount of ground rent was £60 invoiced quarterly. The lease ended on 28 June 2080. Considering the 54 years unexpired we estimated the premium to the landlord to extend the lease to be within £32,300 and £37,400 plus expenses.