When it comes to residential leasehold property in Otley, you are actually buying a right to live in a property for a set period of time. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Leasehold owners in Otley with a lease approaching 81 years unexpired should seriously consider extending it sooner rather than later. Once a lease has under 80 years left, under the current statute the landlord is entitled to calculate and charge a larger amount, based on a technical calculation, known as “marriage value” which is due.
Leasehold residencies in Otley with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Otley can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Otley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Eliot was the the leasehold owner of a conversion flat in Otley being sold with a lease of a few days over fifty eight years unexpired. Eliot on an informal basis approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Eliot to invoke his statutory right. Eliot procured expert legal guidance and secured satisfactory deal without resorting to tribunal and sell the property.
Dr L André took over the lease of a purpose-built flat in Otley in September 1997. We are asked if we could approximate the premium could be to prolong the lease by a further 90 years. Similar homes in Otley with 100 year plus lease were worth £295,000. The average amount of ground rent was £45 collected monthly. The lease concluded in 2099. Having 74 years unexpired we calculated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 exclusive of fees.
In 2013 we were approached by Mr and Mrs. Y Wood who, having bought a garden apartment in Otley in August 1995. The dilemma was if we could estimate the premium could be for a 90 year lease extension. Comparable residencies in Otley with a long lease were in the region of £248,000. The mid-range ground rent payable was £65 collected per annum. The lease expiry date was on 21 May 2088. Taking into account 63 years unexpired we calculated the premium to the freeholder to extend the lease to be between £20,900 and £24,200 not including professional charges.