On the balance of probabilities where you own a flat in Otley you actually own a long leasehold interest over your property
Leasehold premises in Otley with more than one hundred 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 property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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 handle Otley 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 conveyancing solicitor we work with provide it.
Trailing unsuccessful correspondence with the landlord of her first floor flat in Otley, Holly started the lease extension process just as the lease was nearing the all-important 80-year mark. The transaction was concluded in November 2009. The landlord’s costs were kept to an absolute minimum.
Last Winter we were e-mailed by Mr and Mrs. G Petit , who purchased a ground floor apartment in Otley in June 2000. We are asked if we could approximate the price would likely be to prolong the lease by a further 90 years. Comparative homes in Otley with an extended lease were in the region of £171,800. The mid-range ground rent payable was £55 collected every twelve months. The lease terminated in 2075. Given that there were 50 years remaining we approximated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of legals.
Last year we were contacted by Mr and Mrs. V Anderson , who purchased a garden apartment in Otley in July 1999. The dilemma was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative flats in Otley with a long lease were worth £280,000. The average ground rent payable was £45 collected per annum. The lease ran out on 1 November 2095. Taking into account 70 years left we approximated the premium to the freeholder for the lease extension to be between £12,400 and £14,200 plus costs.