When it comes to long leasehold property in Ottershaw, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years left. Residents in Ottershaw with a lease nearing 81 years unexpired should seriously consider extending it as soon as possible. Once the lease term has less than 80 years outstanding, under the current statute the freeholder can calculate and levy a greater amount, assessed on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Ottershaw with more than one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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 |
Lease extensions in Ottershaw can be a difficult process. We recommend you secure guidance from a conveyancing solicitor 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 dealing with Ottershaw lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Blake owned a high value apartment in Ottershaw being sold with a lease of a few days over sixty years unexpired. Blake on an informal basis contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Blake to exercise his statutory right. Blake procured expert legal guidance and was able to make a more informed judgement and deal with the matter and readily saleable.
Last February we were called by Mr F Edwards , who acquired a studio flat in Ottershaw in March 1999. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Similar premises in Ottershaw with an extended lease were in the region of £205,000. The average ground rent payable was £50 billed per annum. The lease ended in 2105. Having 79 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 not including professional charges.
Dr F Vincent acquired a purpose-built flat in Ottershaw in March 2005. We are asked if we could approximate the price could be to prolong the lease by an additional years. Comparative premises in Ottershaw with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £65 invoiced annually. The lease expiry date was in 2094. Taking into account 68 years outstanding we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.