Ottery St Mary leases on residential properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Ottery St Mary will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some circumstances you may not qualify. There are also strict timetables and formalities to follow once the process has started so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
The lawyers that we work with procure Ottery St Mary 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.
After unsuccessful negotiations with the landlord of her two bedroom apartment in Ottery St Mary, Poppy started the lease extension process as the eighty year deadline was rapidly nearing. The legal work was concluded in October 2011. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were contacted by Ms Amber Michel who, having took over the lease of a one bedroom flat in Ottery St Mary in August 1996. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparative properties in Ottery St Mary with an extended lease were valued around £285,000. The mid-range ground rent payable was £55 billed per annum. The lease lapsed on 1 May 2103. Taking into account 79 years unexpired we approximated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 not including expenses.
Last Christmas we were e-mailed by Dr Abigail Peterson , who took over the lease of a purpose-built flat in Ottery St Mary in June 2011. We are asked if we could estimate the premium would be to prolong the lease by ninety years. Comparable flats in Ottery St Mary with 100 year plus lease were valued around £193,400. The average amount of ground rent was £65 invoiced yearly. The lease lapsed in 2083. Taking into account 59 years left we approximated the premium to the landlord to extend the lease to be between £21,900 and £25,200 plus costs.