The market value of Charlbury leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate substantially once the remaining term is less than 80 years
Leasehold properties in Charlbury with over 100 years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Irrespective of whether you are a tenant or a landlord in Charlbury,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Charlbury valuers.
In recent months Gabriel, started to get close to the 80-year mark with the lease on his purpose- built apartment in Charlbury. In buying his home 19 years previously, the length of the lease was of no bearing. by good luck, he noticed he needed to take action soon on Extending the lease. Gabriel was able to extend his lease at the eleventh hour in July. Gabriel and the landlord ultimately settled on an amount of £5,000 . If the lease had dipped to less than eighty years, the amount would have become more exhorbitant by a minimum £1,150.
Last Summer we were phoned by Dr Ashleigh Patel , who owned a one bedroom apartment in Charlbury in September 2003. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Identical flats in Charlbury with a long lease were in the region of £255,000. The mid-range ground rent payable was £50 invoiced monthly. The lease elapsed in 2096. Having 70 years outstanding we estimated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 not including professional charges.
In 2010 we were approached by Mr and Mrs. R López who, having owned a first floor apartment in Charlbury in January 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparative properties in Charlbury with 100 year plus lease were worth £246,800. The mid-range ground rent payable was £60 billed every twelve months. The lease end date was in 2076. Taking into account 50 years unexpired we approximated the compensation to the landlord to extend the lease to be within £44,700 and £51,600 exclusive of fees.