Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Oughtibridge. Clearly, the period of lease left shortens over time. This is often overlooked and only becomes a problem when the residence needs to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Qualifying leaseholders in Oughtibridge have the legal entitlement to extend the lease for a further 90 years in accordance with legislation. You should give due attention before putting off your Oughtibridge lease extension. Putting off the cost now only increases the price you will eventually have to pay for a lease extension
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Oughtibridge,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Oughtibridge valuers.
Off the back of unsuccessful discussions with the freeholder of her studio flat in Oughtibridge, Olivia initiated the lease extension process just as the lease was approaching the critical eighty-year threshold. The lease extension was finalised in September 2007. The freeholder’s charges were negotiated to about 450 GBP.
Mr and Mrs. J Phillips acquired a garden flat in Oughtibridge in September 2002. The dilemma was if we could estimate the premium could be for a ninety year lease extension. Comparable homes in Oughtibridge with an extended lease were in the region of £242,600. The average amount of ground rent was £45 billed every twelve months. The lease termination date was in 2092. Having 67 years outstanding we estimated the premium to the landlord to extend the lease to be within £11,400 and £13,200 not including legals.
Last Christmas we were phoned by Mr and Mrs. D Hill , who owned a one bedroom apartment in Oughtibridge in November 1995. The question was if we could estimate the price could be to extend the lease by 90 years. Comparable premises in Oughtibridge with 100 year plus lease were valued about £280,000. The mid-range amount of ground rent was £55 billed yearly. The lease ran out in 2103. Having 78 years as a residual term we approximated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of costs.