Main reasons to commence your Ottershaw lease extension

Why you should start your Ottershaw lease extension today:

Increase your lease and increase your Ottershaw property value

The value of Ottershaw leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase materialy once the remaining term is less than eighty years

Ottershaw property with a lease extension has roughly the same value as a freehold

Leasehold properties in Ottershaw with in excess of one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges merit it.

Lenders may not loan monies with a short lease

The trend since over the last decade has been for banks to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has resulted in the unexpired lease term required by lenders has increased. Historically mortgage companies would lend on a lease with twenty years plus the term of the loan - typically 50 year leases but those requirements have been chipped away by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Ottershaw lease extension solicitors or enfranchisement solicitors

Using our service gives you enhanced control over the value of your Ottershaw leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Ottershaw Lease Extension Case Studies:

Jake, Ottershaw, Surrey,

Jake owned a high value flat in Ottershaw being sold with a lease of a little over 59 years outstanding. Jake on an informal basis spoke with his freeholder being a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Jake to exercise his statutory right. Jake obtained expert legal guidance and secured an acceptable deal without going to tribunal and ending up with a market value flat.

Ottershaw case:

In 2014 we were called by Mr and Mrs. S Kelly who, having moved into a purpose-built apartment in Ottershaw in November 2008. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year lease extension. Similar residencies in Ottershaw with an extended lease were valued about £198,800. The mid-range ground rent payable was £55 invoiced yearly. The lease termination date was on 17 April 2081. Taking into account 55 years outstanding we estimated the premium to the freeholder for the lease extension to be within £33,300 and £38,400 not including legals.

Ottershaw case:

Last year we were approach by Dr Adam Ramírez , who purchased a ground floor apartment in Ottershaw in October 2009. The dilemma was if we could estimate the premium would be to extend the lease by a further 90 years. Comparable properties in Ottershaw with 100 year plus lease were in the region of £295,000. The mid-range amount of ground rent was £50 billed yearly. The lease elapsed on 3 October 2101. Taking into account 75 years unexpired we calculated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus expenses.