There is no doubt about it a leasehold flat or house in Ottershaw is a wasting asset as a result of the diminishing lease term. If the residual term has, beyond 100 years remaining then this decrease may be fractional however there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending sooner than later. Most flat owners in Ottershaw will meet the qualifying criteria; however a lawyer can advise whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally considered that a property with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with handle Ottershaw 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 lawyer we work with provide it.
Last October Max, started to get close to the eighty-year threshold with the lease on his studio flat in Ottershaw. In buying his home 18 years previously, the lease term was of no relevance. by good luck, he recognised he would imminently be paying an inflated amount for Extending the lease. Max extended the lease at the eleventh hour last April. Max and the landlord subsequently agreed on sum of £6,000 . If he failed to meet the deadline, the premium would have gone up by at least £1,000.
Mr and Mrs. G Norbert completed a one bedroom apartment in Ottershaw in March 2004. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative flats in Ottershaw with 100 year plus lease were valued around £240,600. The average amount of ground rent was £60 billed every twelve months. The lease ended in 2087. Given that there were 62 years unexpired we calculated the premium to the freeholder for the lease extension to be within £21,900 and £25,200 plus legals.
Last year we were phoned by Dr G Fournier , who acquired a newly refurbished flat in Ottershaw in June 1995. We are asked if we could approximate the price would be for a 90 year extension to my lease. Comparable flats in Ottershaw with an extended lease were valued about £174,200. The average ground rent payable was £55 collected monthly. The lease expired in 2076. Having 51 years outstanding we estimated the premium to the freeholder for the lease extension to be between £31,400 and £36,200 not including expenses.