Ottery St Mary Lease Extension - Free Consultation

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Main reasons to start your Ottery St Mary lease extension


Why you should commence your Ottery St Mary lease extension today:

Increase your lease and increase your Ottery St Mary property value

Ottery St Mary residential property owned on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.

Ottery St Mary property with a lease extension has roughly the same value as a freehold

Leasehold properties in Ottery St Mary with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.

Banks and Building Societies will not grant a mortgage on a short lease

The propensity since the credit crunch has been for mortgage companies to tighten lending criteria across the board - this has extended to the types of security over which the mortgage is to be charged. This has meant the unexpired lease term required by banks has increased. Historically lenders would grant a mortgage on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Lender Requirement
Accord Mortgages 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.
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.
Halifax Minimum 70 years from the date of the mortgage.
Royal Bank of Scotland Mortgage term plus 30 years.

Why use us for your lease extension in Ottery St Mary?

Engaging our service will provide you enhanced control over the value of your Ottery St Mary leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Ottery St Mary Lease Extension Case Summaries:

Lucas, Ottery St Mary, Devon,

Lucas was the the leasehold owner of a conversion apartment in Ottery St Mary being sold with a lease of a few days over fifty eight years left. Lucas informally spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be payable on a lease extension were Lucas to invoke his statutory right. Lucas procured expert advice and secured satisfactory resolution informally and sell the flat.

Ottery St Mary case:

Ms O Wood completed a ground floor apartment in Ottery St Mary in October 2010. The question was if we could estimate the price would likely be for a 90 year lease extension. Similar residencies in Ottery St Mary with an extended lease were valued about £280,000. The mid-range ground rent payable was £55 billed every twelve months. The lease came to a finish on 19 November 2103. Considering the 78 years unexpired we estimated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus costs.

Ottery St Mary case:

Last Winter we were called by Mr Thomas Cox , who acquired a newly refurbished apartment in Ottery St Mary in June 2005. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year lease extension. Comparable homes in Ottery St Mary with a long lease were valued about £191,000. The mid-range ground rent payable was £65 collected yearly. The lease ran out on 18 March 2083. Taking into account 58 years remaining we estimated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 not including professional charges.