On the balance of probabilities where you own a flat in Ouston you actually own a long leasehold interest over your property
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with procure Ouston 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 lawyer we work with provide it.
Following protracted correspondence with the landlord of her purpose-built apartment in Ouston, Megan initiated the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The lease extension completed in October 2005. The landlord’s fees were negotiated to about 600 GBP.
In 2011 we were called by Mr V Khan who, having bought a one bedroom flat in Ouston in March 2009. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Similar premises in Ouston with 100 year plus lease were worth £250,400. The mid-range ground rent payable was £65 invoiced monthly. The lease expired on 23 January 2089. Taking into account 64 years remaining we calculated the premium to the landlord to extend the lease to be within £19,000 and £22,000 exclusive of costs.
Last year we were called by Mr and Mrs. W Lambert , who purchased a one bedroom apartment in Ouston in July 2004. The dilemma was if we could shed any light on how much (approximately) premium could be to extend the lease by ninety years. Similar residencies in Ouston with an extended lease were in the region of £184,000. The mid-range ground rent payable was £55 billed every twelve months. The lease lapsed on 16 October 2078. Considering the 53 years unexpired we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of professional charges.