As the the remaining lease term of a Otley domestic lease diminished so does its value and therefore the value of your property. If the residual term has, in excess of 125 years remaining then this decrease may be negligible however there will become a stage when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Many flat owners in Otley will qualify for this right; however a conveyancing solicitor can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Otley with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Otley leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Toby, came critically near to the eighty-year threshold with the lease on his two bedroom flat in Otley. Having purchased his flat two decades ago, the lease term was of minimal bearing. by good luck, he noticed he would soon be paying an escalated premium for Extending the lease. Toby was able to extend his lease just in the nick of time in September. Toby and the freeholder via the management company eventually settled on a premium of £5,500 . If the lease had dipped below eighty years, the figure would have increased by a minimum £1,125.
Last Spring we were phoned by Mr L Peterson , who was assigned a lease of a purpose-built apartment in Otley in September 1995. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Similar premises in Otley with an extended lease were worth £240,600. The average ground rent payable was £65 invoiced quarterly. The lease elapsed on 25 April 2087. Having 62 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of professional charges.
Last Summer we were e-mailed by Mr and Mrs. L Martin , who bought a one bedroom flat in Otley in November 1997. The question was if we could shed any light on how much (approximately) price would be to prolong the lease by an additional years. Comparable flats in Otley with a long lease were worth £179,200. The mid-range ground rent payable was £55 collected per annum. The lease concluded on 17 September 2076. Taking into account 51 years left we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including costs.