The value of Oughtibridge leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase significantly once the unexpired lease term is below than 80 years
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire 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. |
Engaging our service gives you better control over the value of your Oughtibridge leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After lengthy negotiations with the freeholder of her two bedroom apartment in Oughtibridge, Jordan started the lease extension process as the eighty year threshold was swiftly approaching. The lease extension was concluded in April 2008. The freeholder’s charges were kept to an absolute minimum.
In 2011 we were called by Mr and Mrs. S Bennett who, having acquired a studio apartment in Oughtibridge in June 1995. The question was if we could approximate the premium could be to extend the lease by 90 years. Comparable premises in Oughtibridge with an extended lease were in the region of £168,800. The mid-range ground rent payable was £60 invoiced every twelve months. The lease expired on 24 June 2080. Considering the 55 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 not including expenses.
Last Winter we were e-mailed by Mr M Sánchez , who owned a one bedroom flat in Oughtibridge in May 1997. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative flats in Oughtibridge with an extended lease were in the region of £235,200. The mid-range ground rent payable was £45 invoiced every twelve months. The lease ended on 16 July 2091. Considering the 66 years remaining we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.