Owning a flat usually means owning a lease of the property, which has a finite term of years. This lease will usually be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in South Ockendon. Clearly, the term of lease left reduces as time goes by. This is often ignored and only raises itself as an issue when the flat or house has to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in South Ockendon have the right to extend the lease for a further 90 years under statute. Please give careful attention before putting off your South Ockendon lease extension. Holding off that expense now only increases the price you will ultimately have to pay for a lease extension
It is generally accepted that a property with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with handle South Ockendon lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Half a year ago Leo, started to get close to the eighty-year mark with the lease on his leasehold flat in South Ockendon. Having bought his home 19 years ago, the unexpired term was of no importance. by good luck, he noticed he needed to take steps soon on a lease extension. Leo extended the lease just ahead of time in June. Leo and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If the lease had fallen below 80 years, the premium would have gone up by at least £850.
Last Summer we were called by Mr and Mrs. I Moreau , who moved into a one bedroom apartment in South Ockendon in November 1999. The question was if we could approximate the price would be for a 90 year lease extension. Comparative flats in South Ockendon with an extended lease were valued around £300,000. The average ground rent payable was £50 invoiced per annum. The lease termination date was on 24 October 2101. Considering the 75 years unexpired we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
An example of a Lease Extension case for a South Ockendon property 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 was in relation to 1 flat. The remaining number of years on the lease was 57.5 years.