With a residential leasehold property in Adderbury, you are actually purchasing an entitlement to reside in a property for a prescribed time frame. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater especially once there are less than 80 years remaining. Residents in Adderbury with a lease drawing near to 81 years remaining should seriously think of extending it without delay. When a lease has below 80 years left, under the relevant Act the freeholder can calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
The conveyancing solicitors that we work with procure Adderbury 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.
Half a year ago Kyle, started to get near to the eighty-year mark with the lease on his garden apartment in Adderbury. Having purchased his flat two decades ago, the unexpired term was of no concern. Thankfully, he became aware that he would imminently be paying way over the odds for a lease extension. Kyle was able to extend his lease just ahead of time last June. Kyle and the freeholder subsequently agreed on sum of £5,500 . If the lease had dropped lower than eighty years, the price would have gone up by at least £1,150.
Last Summer we were contacted by Mr and Mrs. M Moreau , who owned a basement flat in Adderbury in November 2011. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative flats in Adderbury with an extended lease were valued around £246,800. The mid-range amount of ground rent was £60 billed monthly. The lease ended on 3 January 2075. Considering the 50 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 not including costs.
Mr and Mrs. T Lefèvre bought a first floor apartment in Adderbury in February 2008. We are asked if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Identical properties in Adderbury with a long lease were in the region of £208,200. The average amount of ground rent was £65 billed monthly. The lease came to a finish on 5 August 2086. Given that there were 61 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 plus fees.