Unfortunately that a Ottery St Mary residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Ottery St Mary property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below eighty years - otherwise a higher premium will be due. Most leasehold owners in Ottery St Mary will be able to extend under the legislation; however a lawyer will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your lawyer from beginning to end of the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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 |
The lawyers that we work with undertake Ottery St Mary 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.
Trailing unsuccessful negotiations with the freeholder of her basement flat in Ottery St Mary, Kelsey commenced the lease extension process just as her lease was approaching the all-important 80-year mark. The transaction was finalised in March 2005. The landlord’s costs were negotiated to a tad over 500 pounds.
Last Christmas we were e-mailed by Mr and Mrs. P Flores , who acquired a one bedroom flat in Ottery St Mary in March 2008. The question was if we could estimate the price would be to extend the lease by a further 90 years. Comparative homes in Ottery St Mary with a long lease were worth £285,000. The mid-range amount of ground rent was £55 billed monthly. The lease ran out on 10 June 2105. Given that there were 79 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus professional charges.
Last Christmas we were e-mailed by Ms Caitlin Parker , who acquired a ground floor flat in Ottery St Mary in October 2009. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Ottery St Mary with 100 year plus lease were in the region of £193,400. The mid-range amount of ground rent was £65 collected yearly. The lease finished on 15 June 2085. Taking into account 59 years remaining we estimated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including legals.