For those whose Ovingham home is held on a long lease, the message is clear – if nothing is done, the property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to extend the lease.
Leasehold residencies in Ovingham with over one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service will provide you better control over the value of your Ovingham leasehold, as your property will be more valuable and saleable in terms 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.
Stanley owned a studio flat in Ovingham being marketed with a lease of a little over 61 years remaining. Stanley informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Stanley to invoke his statutory right. Stanley obtained expert advice and was able to make an informed judgement and handle with the matter and sell the property.
Mr and Mrs. R Hernández purchased a one bedroom flat in Ovingham in February 1995. We are asked if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparative premises in Ovingham with a long lease were valued around £280,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease ended in 2103. Given that there were 77 years as a residual term we approximated the premium to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.
Mrs Y Brown owned a first floor flat in Ovingham in July 2001. We are asked if we could approximate the premium would be to extend the lease by a further 90 years. Identical properties in Ovingham with a long lease were in the region of £183,600. The mid-range amount of ground rent was £65 invoiced quarterly. The lease ran out in 2083. Given that there were 57 years remaining we approximated the compensation to the freeholder for the lease extension to be within £28,500 and £33,000 not including fees.