The value of Overton leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase materialy once the remaining term is less than 80 years
Leasehold residencies in Overton with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth 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 maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Overton can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in lease extensions.
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 Overton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted correspondence with the freeholder of her garden apartment in Overton, Rachael initiated the lease extension process as the 80 year threshold was quickly advancing. The legal work was finalised in May 2007. The freeholder’s charges were kept to an absolute minimum.
Mr and Mrs. M Evans moved into a newly refurbished flat in Overton in November 2009. The dilemma was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Identical flats in Overton with an extended lease were in the region of £257,800. The average amount of ground rent was £65 collected per annum. The lease terminated on 3 November 2091. Taking into account 65 years as a residual term we calculated the compensation to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of costs.
Mr and Mrs. L Miller took over the lease of a ground floor apartment in Overton in May 1999. The question was if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year lease extension. Comparable homes in Overton with an extended lease were worth £196,400. The average amount of ground rent was £55 billed every twelve months. The lease expired on 10 May 2080. Given that there were 54 years remaining we approximated the compensation to the landlord for the lease extension to be between £34,200 and £39,600 plus expenses.