Ottery St Mary leases on residential properties are gradually losing value. if your lease has approximately 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease drops below this level then you start incurring an additional element called marriage value. Flat owners in Ottery St Mary will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain situations you may not be entitled. There are also strict timetables and procedures to follow once the process has started so it’s sensible to be guided by a conveyancer during the process.
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | |
| Chelsea Building Society | |
| Coventry Building Society | |
| Skipton Building Society | |
| Royal Bank of Scotland |
The conveyancers that we work with procure 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.
Blake owned a conversion flat in Ottery St Mary being sold with a lease of just over 59 years left. Blake on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £200 per annum. Ordinarily, ground rent would not be due on a lease extension were Blake to exercise his statutory right. Blake obtained expert advice and was able to make a more informed decision and handle with the matter and sell the property.
In 2010 we were approached by Dr L Pérez who, having bought a studio flat in Ottery St Mary in June 2005. The question was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar flats in Ottery St Mary with 100 year plus lease were valued around £173,800. The average ground rent payable was £60 invoiced quarterly. The lease ran out in 2081. Given that there were 55 years as a residual term we calculated the premium to the landlord to extend the lease to be between £31,400 and £36,200 exclusive of expenses.
Last Spring we were phoned by Dr Aarav Cook , who bought a one bedroom flat in Ottery St Mary in February 1995. We are asked if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Similar flats in Ottery St Mary with a long lease were in the region of £235,200. The average amount of ground rent was £45 billed quarterly. The lease terminated in 2092. Taking into account 66 years remaining we approximated the compensation to the freeholder for the lease extension to be between £12,400 and £14,200 plus expenses.