Owning a apartment usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Banbury. Clearly, the term of lease left shortens as time goes by. This may pass by relatively unnoticed when the property needs to be disposed of or re-mortgaged. The fewer the years remaining the lower the value of the property and the more expensive it will be to obtain a lease extension. Eligible long lease owners in Banbury have the legal entitlement to extend the lease for a further 90 years in accordance with statute. Do give careful deliberation before delaying your Banbury lease extension. Holding off that expense now only increases the price you will ultimately have to pay for a lease extension
Leasehold premises in Banbury with in excess of one hundred years left 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 home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Banbury 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.
In 2014 Blake, came dangerously near to the eighty-year threshold with the lease on his ground floor apartment in Banbury. In buying his property two decades ago, the length of the lease was of no significance. by good luck, he noticed he needed to take action soon on Extending the lease. Blake arranged for a lease extension just under the wire last June. Blake and the landlord ultimately agreed on a premium of £5,500 . If the lease had fallen lower than 80 years, the amount would have increased by at least £925.
Last Spring we were phoned by Ms Anna Evans , who was assigned a lease of a ground floor flat in Banbury in June 1995. We are asked if we could approximate the price would be to extend the lease by ninety years. Comparable premises in Banbury with 100 year plus lease were worth £206,200. The mid-range ground rent payable was £60 billed every twelve months. The lease elapsed on 11 January 2081. Given that there were 56 years outstanding we approximated the compensation to the freeholder for the lease extension to be between £31,400 and £36,200 not including expenses.
In 2014 we were approached by Dr Chantelle Davis who, having completed a studio flat in Banbury in November 2010. The question was if we could approximate the price would be for a 90 year lease extension. Similar residencies in Banbury with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 billed quarterly. The lease terminated in 2101. Given that there were 76 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus legals.