Otley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Otley enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Otley you really ought to check if your lease has between seventy and ninety years remaining. There are compelling reasons why a Otley leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is put in place without delay
Leasehold residencies in Otley with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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. |
Lease extensions in Otley can be a difficult process. We recommend you procure guidance from a conveyancer 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 a wealth of experience dealing with Otley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last Winter Kian, started to get near to the 80-year mark with the lease on his basement flat in Otley. In buying his flat 19 years previously, the unexpired term was of minimal significance. by good luck, he recognised he needed to take action soon on Extending the lease. Kian was able to extend his lease just in the nick of time last January. Kian and the landlord eventually settled on an amount of £5,000 . If the lease had fallen lower than eighty years, the premium would have increased by a minimum £1,050.
Ms Kate Wilson took over the lease of a newly refurbished flat in Otley in February 1995. We are asked if we could approximate the premium would be for a ninety year lease extension. Similar flats in Otley with 100 year plus lease were valued around £267,600. The average amount of ground rent was £65 collected quarterly. The lease ran out in 2093. Having 67 years outstanding we calculated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 exclusive of expenses.
Last Christmas we were e-mailed by Ms R Watson , who acquired a ground floor apartment in Otley in July 2008. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar flats in Otley with an extended lease were in the region of £206,200. The average ground rent payable was £60 invoiced per annum. The lease ended on 3 October 2082. Given that there were 56 years remaining we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 plus professional charges.