South Ockendon leases on residential properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in South Ockendon will usually be legally entitled to a lease extension; however a solicitor should be able check if you qualify. In some situations you may not be entitled. There are also strict timetables and steps to follow once the process is initiated so it’s prudent to be guided by a conveyancing solicitor during the process.
Leasehold residencies in South Ockendon with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing 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. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in South Ockendon,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with South Ockendon valuers.
Lucas was the the leasehold owner of a high value apartment in South Ockendon being marketed with a lease of a little over 72 years remaining. Lucas informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Lucas to invoke his statutory right. Lucas obtained expert legal guidance and secured an acceptable deal informally and sell the property.
In 2012 we were contacted by Ms Jade Williams who, having was assigned a lease of a one bedroom flat in South Ockendon in January 1995. We are asked if we could estimate the premium would be to extend the lease by ninety years. Comparative properties in South Ockendon with a long lease were worth £210,000. The average amount of ground rent was £50 collected annually. The lease concluded on 28 July 2106. Considering the 80 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus expenses.
An example of a Lease Extension decision for a South Ockendon flat 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 lease term was 57.5 years.