Overton leases on domestic deteriorating in value. if your lease has about ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Overton will usually be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In certain situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Bank of 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Overton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Overton valuers.
After unsuccessful correspondence with the landlord of her leasehold apartment in Overton, Lydia initiated the lease extension process as the eighty year threshold was swiftly coming. The lease extension was finalised in June 2009. The landlord’s charges were kept to an absolute minimum.
Last April we were phoned by Dr Ollie Fournier , who owned a first floor flat in Overton in November 1995. We are asked if we could approximate the price would be to extend the lease by a further 90 years. Identical residencies in Overton with an extended lease were worth £189,000. The mid-range ground rent payable was £55 collected yearly. The lease ran out in 2079. Taking into account 53 years left we estimated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 plus costs.
Last Summer we were called by Mr and Mrs. K Young , who completed a studio flat in Overton in October 2001. The question was if we could approximate the premium could be to prolong the lease by a further 90 years. Comparative premises in Overton with an extended lease were worth £290,000. The average amount of ground rent was £45 invoiced every twelve months. The lease came to a finish on 16 January 2099. Taking into account 73 years remaining we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus legals.