Top reasons for Otley lease extension

Why you should start your Otley lease extension today:

Increase your lease and increase your Otley property value

Otley leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. It is the case that most Otley tenants have the right to extend their lease by an additional 90 years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Otley you must see if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold premises in Otley with more than 100 years left on the lease are often referred to as ‘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 warrant it.

Mortgage lenders may decide not to grant a mortgage on a short lease

Mortgage companies do not like short residential leases. You are likely to experience problems if you need to sell your flat in Otley if the remaining lease term is less than the criteria set by most banks and building societies. Different lenders have different requirements but generally theyrequire a minimum remaining lease term of seventy years.

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

Engaging our service gives you increased control over the value of your Otley leasehold, as your property will be more valuable and saleable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.

Otley Lease Extension Case Studies:

Liam, Otley, Leeds,

Liam owned a studio apartment in Otley being marketed with a lease of just over 72 years unexpired. Liam on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. No ground rent would be due on a lease extension were Liam to invoke his statutory right. Liam procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.

Otley case:

In 2013 we were e-mailed by Dr B Brown who, having bought a studio apartment in Otley in June 1995. We are asked if we could estimate the premium would be for a ninety year extension to my lease. Similar residencies in Otley with a long lease were valued around £290,000. The average ground rent payable was £45 invoiced per annum. The lease finished on 13 August 2098. Given that there were 72 years as a residual term we estimated the premium to the landlord for the lease extension to be between £11,400 and £13,200 exclusive of fees.

Otley case:

Last Summer we were phoned by Mr and Mrs. F Parker , who owned a first floor flat in Otley in June 2002. The question was if we could estimate the compensation to the landlord would likely be to extend the lease by an additional years. Comparable properties in Otley with 100 year plus lease were worth £235,600. The mid-range ground rent payable was £60 invoiced per annum. The lease finished in 2088. Given that there were 62 years left we estimated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus fees.