It’s an underpublicised truth that a Bloxham residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Bloxham property market.Where your lease has approximately ninety years left, you need to start thinking about a lease extension. If lease term slips under 80 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. The marriage fee is the amount of extra value that a lease extension will add the property Most leasehold owners in Bloxham will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your lawyer throughout the process.
It is generally accepted that a property with over one hundred years remaining is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Yorkshire Building Society | 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. |
Lease extensions in Bloxham can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Bloxham lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Muhammad owned a 2 bedroom flat in Bloxham being marketed with a lease of a few days over 61 years remaining. Muhammad informally approached his freeholder a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Muhammad to invoke his statutory right. Muhammad obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Dr V Moore owned a recently refurbished apartment in Bloxham in July 1995. The dilemma was if we could shed any light on how much (roughly) premium could be to prolong the lease by an additional years. Comparable premises in Bloxham with an extended lease were valued around £220,400. The mid-range amount of ground rent was £45 billed every twelve months. The lease concluded on 9 November 2090. Given that there were 64 years as a residual term we approximated the premium to the landlord to extend the lease to be within £15,200 and £17,600 not including costs.
Last Winter we were approach by Mr Owen Brown , who moved into a basement apartment in Bloxham in July 2011. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparative flats in Bloxham with a long lease were worth £270,000. The average ground rent payable was £55 collected annually. The lease ended on 10 April 2101. Taking into account 75 years outstanding we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of costs.