The market value of a leasehold property in Ouston is impacted by how long the lease has remaining. If it is close to or less than 80 years you should envisage problems on re-sale, so it is recommended to arrange for the lease to be extended prior to buying. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that a lease extension can be concluded in advance of the 80 year mark. Statute entitles Ouston qualifying lessees to an additional term of ninety years on top of the remaining term, at a nominal rent (no ground rent). The intention of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Ouston with over one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service will provide you enhanced control over the value of your Ouston leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Hugo was the the leasehold owner of a 2 bedroom apartment in Ouston on the market with a lease of fraction over sixty years outstanding. Hugo on an informal basis approached his landlord being a well known local-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 rise in the rent to £50 per annum. No ground rent would be due on a lease extension were Hugo to exercise his statutory right. Hugo obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2009 we were e-mailed by Ms Isabel Brooks who, having was assigned a lease of a studio apartment in Ouston in January 2012. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Identical premises in Ouston with a long lease were in the region of £285,000. The mid-range amount of ground rent was £45 invoiced yearly. The lease lapsed on 23 February 2098. Given that there were 72 years outstanding we estimated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus costs.
In 2009 we were approached by Mr and Mrs. B Torres who, having bought a newly refurbished flat in Ouston in September 1999. We are asked if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Comparative premises in Ouston with an extended lease were worth £233,200. The average amount of ground rent was £60 collected monthly. The lease elapsed on 12 July 2087. Considering the 61 years left we approximated the premium to the freeholder for the lease extension to be within £22,800 and £26,400 not including fees.