There is no doubt about it a leasehold flat or house in Ouston is a wasting asset as a result of the diminishing lease term. Where the lease has, more than 125 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has less than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending sooner as opposed to later. Many flat owners in Ouston will meet the qualifying criteria; nevertheless a conveyancing solicitor will be able to advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Retaining our service will provide you increased control over the value of your Ouston leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Owen owned a high value apartment in Ouston being sold with a lease of fraction over fifty eight years left. Owen informally spoke with his landlord being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent to start with set at £200 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Owen to invoke his statutory right. Owen obtained expert legal guidance and secured an acceptable deal informally and sell the property.
In 2013 we were contacted by Ms Rachael Alexander who, having bought a first floor apartment in Ouston in January 2008. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Identical premises in Ouston with 100 year plus lease were valued around £295,000. The mid-range ground rent payable was £50 invoiced yearly. The lease lapsed on 6 August 2101. Considering the 75 years remaining we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.
In 2014 we were approached by Mr J Harris who, having bought a studio flat in Ouston in April 1998. The dilemma was if we could approximate the premium could be for a 90 year extension to my lease. Similar flats in Ouston with 100 year plus lease were worth £250,400. The mid-range ground rent payable was £65 collected monthly. The lease concluded on 5 April 2090. Given that there were 64 years remaining we approximated the premium to the landlord to extend the lease to be within £19,000 and £22,000 not including professional charges.