Unfortunately that a South Ockendon residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the South Ockendon property prices.Once your lease nears 85ish years, you need to start thinking about a lease extension. If lease term dips below 80 years, you will end up paying half of the property's 'marriage value' in addition to 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 flat owners in South Ockendon will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancer throughout the formalities.
Leasehold properties in South Ockendon with more than 100 years remaining on the lease are often 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 upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
Using our service gives you better control over the value of your South Ockendon leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Cameron was the the leasehold owner of a studio flat in South Ockendon on the market with a lease of a few days over 59 years remaining. Cameron informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Cameron to exercise his statutory right. Cameron obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Last Summer we were approach by Mr and Mrs. L Brown , who took over the lease of a garden flat in South Ockendon in March 1998. We are asked if we could estimate the price could be for a 90 year extension to my lease. Identical homes in South Ockendon with 100 year plus lease were valued around £198,800. The mid-range amount of ground rent was £55 invoiced per annum. The lease expired on 12 October 2081. Given that there were 55 years as a residual term we estimated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus expenses.
An example of a Lease Extension case for a South Ockendon residence is 37 Lodge Court High Street in November 2013. the decision of the LVT was that the premium to be paid for the new lease was £25,559 This case affected 1 flat. The unexpired term was 57.5 years.