The market value of Oughtibridge leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the unexpired lease term is less than eighty years
Leasehold residencies in Oughtibridge with over one hundred years unexpired on the lease are often 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 justify it.
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Oughtibridge can be a difficult process. We recommend you get professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Oughtibridge lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months Milo, started to get close to the 80-year threshold with the lease on his leasehold flat in Oughtibridge. Having purchased his property two decades ago, the length of the lease was of little bearing. Thankfully, he recognised he needed to take action soon on Extending the lease. Milo was able to extend his lease just under the wire last September. Milo and the freeholder ultimately agreed on a premium of £5,500 . If the lease had dropped below 80 years, the amount would have increased by at least £1,075.
Last month we were e-mailed by Mr James Moore , who bought a first floor apartment in Oughtibridge in April 2009. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Identical flats in Oughtibridge with an extended lease were valued around £256,600. The mid-range ground rent payable was £60 invoiced yearly. The lease finished in 2078. Taking into account 52 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of costs.
Dr U Jackson bought a ground floor flat in Oughtibridge in January 1996. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparative homes in Oughtibridge with an extended lease were valued around £218,000. The mid-range ground rent payable was £45 billed yearly. The lease end date was on 22 July 2089. Considering the 63 years unexpired we estimated the premium to the landlord for the lease extension to be within £17,100 and £19,800 plus fees.