The re-sale value of a leasehold property in Oughtibridge depends on how many years the lease has remaining. If it is near to or fewer than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years unexpired so that a lease extension can be addressed ahead of the eighty year threshold. Statute entitles Oughtibridge qualifying lessees to an additional term of ninety years over and above the remaining term, at a peppercorn rent (no ground rent). The purpose of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Oughtibridge with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Chelsea Building Society | |
| Leeds Building Society | |
| The Mortgage Works |
The lawyers that we work with handle Oughtibridge lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
During the course of the last few months Seth, came critically near to the 80-year mark with the lease on his leasehold apartment in Oughtibridge. In buying his home 18 years ago, the lease term was of no bearing. by good luck, he realised he would soon be paying an inflated amount for Extending the lease. Seth was able to extend his lease at the eleventh hour in April. Seth and the landlord who owned the flat above ultimately settled on an amount of £5,000 . If the lease had descended to less than eighty years, the amount would have become more exhorbitant by a minimum £1,150.
In 2014 we were phoned by Mr and Mrs. F Petit who, having took over the lease of a ground floor flat in Oughtibridge in January 2003. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative residencies in Oughtibridge with a long lease were worth £225,400. The average ground rent payable was £45 invoiced yearly. The lease ended on 3 July 2090. Given that there were 64 years remaining we approximated the premium to the landlord for the lease extension to be within £16,200 and £18,600 not including legals.
Ms W Lewis bought a garden flat in Oughtibridge in February 2011. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Comparative homes in Oughtibridge with an extended lease were worth £270,000. The mid-range amount of ground rent was £55 billed per annum. The lease ran out in 2101. Having 75 years left we estimated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of costs.