It’s a harsh truth that a Oughtibridge residential lease is a wasting asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Oughtibridge property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If lease term slips under 80 years, you will then be required to pay half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Oughtibridge will be able to extend under the legislation; however a lawyer should be able to confirm if you qualify for an extension. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer from beginning to end of the process.
Leasehold residencies in Oughtibridge with more than one hundred years outstanding 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 situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Oughtibridge,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Oughtibridge valuers.
Last Christmas Hugo, came dangerously near to the 80-year threshold with the lease on his first floor apartment in Oughtibridge. Having bought his flat two decades ago, the lease term was of little interest. Thankfully, he noticed he needed to take steps soon on a lease extension. Hugo arranged for a lease extension just in the nick of time last April. Hugo and the freeholder subsequently agreed on an amount of £5,000 . If the lease had slid below 80 years, the premium would have increased by a minimum £1,100.
Last Summer we were called by Mr and Mrs. N Moreau , who purchased a basement flat in Oughtibridge in February 2002. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparative premises in Oughtibridge with 100 year plus lease were valued about £265,000. The average ground rent payable was £55 invoiced quarterly. The lease ended on 23 March 2099. Having 74 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
Last Spring we were e-mailed by Mr T Moore , who owned a purpose-built apartment in Oughtibridge in October 1999. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Comparable flats in Oughtibridge with a long lease were in the region of £166,400. The average ground rent payable was £60 invoiced monthly. The lease ended in 2079. Considering the 54 years outstanding we calculated the premium to the landlord for the lease extension to be within £32,300 and £37,400 plus fees.