The market value of North Ockendon leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can increase significantly once the remaining term is less than eighty years
Leasehold residencies in North 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with procure North 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 conveyancer we work with provide it.
Two years ago Owen, came precariously near to the 80-year mark with the lease on his leasehold apartment in North Ockendon. In buying his home 19 years previously, the length of the lease was of minimal importance. Thankfully, he noticed he needed to take action soon on a lease extension. Owen was able to extend his lease just under the wire in August. Owen and the freeholder via the managing agents subsequently agreed on a premium of £6,000 . If the lease had fallen lower than eighty years, the price would have escalated by a minimum £1,000.
Last year we were e-mailed by Mr Arthur Williams , who completed a recently refurbished apartment in North Ockendon in April 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year extension to my lease. Similar homes in North Ockendon with an extended lease were valued about £200,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease lapsed in 2103. Having 77 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including legals.
An example of a Lease Extension decision for a North 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 was in relation to 1 flat. The remaining number of years on the lease was 57.5 years.