The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Ottery St Mary can extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Do think carefully before delaying your Ottery St Mary lease extension. Putting off that expense today simply escalates the premium you will eventually have to pay to extend the lease.
Leasehold residencies in Ottery St Mary with in excess of 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Ottery St Mary can be a difficult process. We recommend you obtain 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 a wealth of experience dealing with Ottery St Mary lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Nathaniel owned a 2 bedroom flat in Ottery St Mary on the market with a lease of fraction over 59 years remaining. Nathaniel informally contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Nathaniel to invoke his statutory right. Nathaniel obtained expert advice and secured satisfactory deal informally and readily saleable.
Last Winter we were approach by Mr and Mrs. C Brooks , who acquired a ground floor flat in Ottery St Mary in August 2006. We are asked if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Comparative residencies in Ottery St Mary with 100 year plus lease were valued around £183,600. The average amount of ground rent was £65 billed annually. The lease expired on 12 October 2082. Having 57 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.
Last Christmas we were called by Mr T Díaz , who completed a ground floor apartment in Ottery St Mary in July 2008. The dilemma was if we could estimate the price would be for a 90 year lease extension. Similar residencies in Ottery St Mary with 100 year plus lease were valued around £245,000. The average ground rent payable was £50 collected every twelve months. The lease expired on 18 February 2093. Given that there were 68 years remaining we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus professional charges.