Chances are that where you own a flat in Ovingham you actually own a long leasehold interest over your property
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | 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. |
| 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 |
Lease extensions in Ovingham can be a difficult process. We recommend you get professional help from a lawyer and surveyor 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 in-depth market knowledge dealing with Ovingham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the landlord of her two bedroom flat in Ovingham, Anna started the lease extension process just as her lease was coming close to the crucial 80-year mark. The transaction was finalised in September 2012. The freeholder’s costs were kept to an absolute minimum.
In 2009 we were e-mailed by Mr G Murphy who, having purchased a ground floor apartment in Ovingham in August 2002. We are asked if we could approximate the premium would likely be to extend the lease by an additional years. Identical premises in Ovingham with an extended lease were in the region of £256,600. The average ground rent payable was £60 invoiced per annum. The lease lapsed in 2077. Considering the 52 years as a residual term we estimated the premium to the freeholder for the lease extension to be within £41,800 and £48,400 exclusive of expenses.
Last month we were e-mailed by Ms T Reed , who took over the lease of a recently refurbished flat in Ovingham in November 1995. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Similar flats in Ovingham with 100 year plus lease were in the region of £215,600. The mid-range amount of ground rent was £45 invoiced yearly. The lease concluded in 2087. Given that there were 62 years as a residual term we approximated the premium to the landlord to extend the lease to be between £18,100 and £20,800 exclusive of costs.