Oughtibridge Lease Extension - Free Consultation

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Main reasons to start your Oughtibridge lease extension


Main reasons to start your Oughtibridge lease extension today:

Increase your lease and increase your Oughtibridge property value

Oughtibridge leases on residential deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is financially advisable for the lease extension to take place before the term of the existing lease dips lower than eighty years - otherwise a higher amount will be due. Flat owners in Oughtibridge will mostly be legally entitled to a lease extension; however it’s a good idea to check with a lawyer to confirm if you qualify. In some cases you may not be entitled. There are prescribed timetables and procedures to follow once the process is initiated so it’s sensible to be guided by a lawyer during the process.

An extended lease has roughly the same value as a freehold

It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for decades to come.

Lenders will not issue a mortgage on a short lease

The propensity since 2008 has been for banks to tighten lending criteria generally - this has extended to the types of security over which the mortgage is to be granted. This has resulted in the minimum number of years remaining under the lease required by mortgage companies has increased. In the past lenders would grant a mortgage on a lease with twenty years plus the term of the loan - routinely fifty year leases but those requirements evolved by the requirement for longer and longer leases - many now have a minimum term of 75 years as standard.

Lender Requirement
Barnsley Building Society 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term.
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.
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.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

What makes us experts in Oughtibridge lease extensions?

Irrespective of whether you are a tenant or a freeholder in Oughtibridge,the lease extension solicitors 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.

Oughtibridge Lease Extension Example Cases:

Kirsty, Oughtibridge, South Yorkshire,

Off the back of protracted discussions with the freeholder of her basement apartment in Oughtibridge, Kirsty commenced the lease extension process just as her lease was coming close to the crucial eighty-year mark. The transaction completed in September 2007. The landlord’s charges were negotiated to under six hundred pounds.

Oughtibridge case:

Last Autumn we were phoned by Dr H Rivera , who acquired a garden apartment in Oughtibridge in May 2008. We are asked if we could approximate the premium would be for a 90 year extension to my lease. Comparative premises in Oughtibridge with an extended lease were worth £210,600. The mid-range ground rent payable was £45 collected every twelve months. The lease came to a finish on 18 July 2087. Considering the 62 years unexpired we calculated the premium to the landlord to extend the lease to be within £18,100 and £20,800 not including expenses.

Oughtibridge case:

Mr and Mrs. V Bell took over the lease of a one bedroom apartment in Oughtibridge in November 2001. The question was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable properties in Oughtibridge with 100 year plus lease were valued about £265,000. The mid-range amount of ground rent was £50 invoiced yearly. The lease ran out in 2098. Having 73 years left we calculated the premium to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.