With a domestic leasehold premises in Ottery St Mary, you are actually purchasing an entitlement to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Residents in Ottery St Mary with a lease nearing 81 years remaining should seriously consider extending it without delay. When a lease has below 80 years remaining, under the relevant Act the freeholder can calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold premises in Ottery St Mary with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
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 conveyancing solicitor we work with provide it.
Subsequent to unsuccessful negotiations with the landlord of her garden flat in Ottery St Mary, Jodie initiated the lease extension process just as the lease was coming close to the all-important eighty-year mark. The legal work was finalised in January 2015. The landlord’s fees were restricted to under 600 GBP.
Mr and Mrs. T Girard bought a studio flat in Ottery St Mary in January 2008. The question was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Comparative premises in Ottery St Mary with 100 year plus lease were in the region of £242,600. The average ground rent payable was £45 invoiced quarterly. The lease elapsed on 19 April 2093. Given that there were 67 years as a residual term we estimated the premium to the landlord for the lease extension to be between £11,400 and £13,200 not including costs.
In 2009 we were e-mailed by Mr Seth Morris who, having bought a one bedroom apartment in Ottery St Mary in April 2011. The question was if we could estimate the premium would be to prolong the lease by ninety years. Comparative residencies in Ottery St Mary with a long lease were worth £280,000. The average ground rent payable was £55 invoiced per annum. The lease ended in 2104. Having 78 years left we estimated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including fees.