When it comes to domestic leasehold premises in Charlbury, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than 80 years left. Anyone in Charlbury with a lease approaching 81 years remaining should seriously consider extending it without delay. When a lease has under 80 years remaining, under the current statute the freeholder is entitled to calculate and levy a larger amount, based on a technical computation, strangely termed as “marriage value” which is due.
Leasehold residencies in Charlbury with in excess of one hundred years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| 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. |
| Chelsea 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you better control over the value of your Charlbury leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Harvey owned a high value flat in Charlbury being sold with a lease of fraction over fifty eight years unexpired. Harvey informally approached his landlord being a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. No ground rent would be payable on a lease extension were Harvey to exercise his statutory right. Harvey procured expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Mr R Ali bought a one bedroom flat in Charlbury in May 1996. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Identical premises in Charlbury with an extended lease were worth £260,000. The mid-range ground rent payable was £50 collected yearly. The lease expired on 22 October 2098. Taking into account 72 years unexpired we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of legals.
Mrs H Taylor purchased a first floor flat in Charlbury in March 1995. We are asked if we could estimate the price would be for a 90 year lease extension. Identical residencies in Charlbury with 100 year plus lease were in the region of £261,600. The average ground rent payable was £60 collected annually. The lease lapsed on 7 March 2078. Considering the 52 years unexpired we calculated the premium to the freeholder for the lease extension to be within £39,000 and £45,000 exclusive of professional charges.