Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Ouston. Clearly, the period of lease left shortens as time goes by. This may pass by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The fewer the years remaining the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Ouston have the right to extend the lease for an additional 90 years in accordance with statute. You should give due consideration before putting off your Ouston lease extension. Holding off the cost now only increases the price you will eventually incur for a lease extension
Leasehold residencies in Ouston with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with handle 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 conveyancing solicitor we work with provide it.
During the course of the last few months Jayden, came seriously close to the eighty-year threshold with the lease on his ground floor flat in Ouston. In buying his home 19 years previously, the lease term was of minimal significance. Fortunately, he realised he needed to take action soon on Extending the lease. Jayden arranged for a lease extension at the eleventh hour last August. Jayden and the freeholder via the management company in the end agreed on an amount of £5,500 . If he had missed the deadline, the price would have escalated by at least £1,100.
In 2014 we were e-mailed by Mr and Mrs. P Robinson who, having acquired a ground floor apartment in Ouston in July 2012. The question was if we could estimate the price would be for a ninety year extension to my lease. Identical properties in Ouston with a long lease were worth £233,200. The average amount of ground rent was £60 invoiced annually. The lease ran out in 2086. Given that there were 61 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £22,800 and £26,400 plus expenses.
Dr Benjamin Peterson owned a basement apartment in Ouston in November 2005. The dilemma was if we could approximate the price would be for a ninety year extension to my lease. Comparable residencies in Ouston with an extended lease were worth £166,800. The average amount of ground rent was £50 collected every twelve months. The lease terminated on 10 November 2075. Having 50 years left we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 not including legals.