It’s a harsh certainty that a Ouston residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Ouston property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term slips under 80 years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Ouston will be able to extend under the legislation; however a conveyancer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timeframes and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
Leasehold premises in Ouston with in excess of 100 years unexpired 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 to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Ouston can be a difficult process. We recommend you obtain guidance from a lawyer 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 Ouston lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy discussions with the landlord of her first floor flat in Ouston, Chelsea initiated the lease extension process just as the lease was nearing the critical eighty-year deadline. The legal work completed in October 2015. The freeholder’s charges were kept to an absolute minimum.
Dr Lucy Rodríguez completed a ground floor flat in Ouston in May 1996. The dilemma was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Comparative residencies in Ouston with an extended lease were in the region of £205,000. The average amount of ground rent was £50 invoiced every twelve months. The lease terminated in 2105. Taking into account 79 years outstanding we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus fees.
Mr and Mrs. A Dupont bought a recently refurbished flat in Ouston in November 2003. The question was if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar flats in Ouston with 100 year plus lease were worth £275,000. The average amount of ground rent was £65 billed per annum. The lease concluded on 6 May 2094. Given that there were 68 years as a residual term we estimated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of costs.