Owning a flat usually means owning a lease of the property, which has a finite term of years. The lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have witnessed longer and shorter terms in Chipping Norton. Clearly, the period of lease left reduces as time goes by. This is often overlooked and only becomes a problem when the residence needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying leaseholders in Chipping Norton have the legal entitlement to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. You should give due attention before putting off your Chipping Norton lease extension. Holding off that expense now only increases the price you will eventually incur to extend your lease
Leasehold residencies in Chipping Norton with more than 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 circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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. |
Regardless of whether you are a tenant or a freeholder in Chipping Norton,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Chipping Norton valuers.
16 months ago Isaac, started to get near to the eighty-year threshold with the lease on his two bedroom flat in Chipping Norton. In buying his home 18 years ago, the length of the lease was of no importance. by good luck, he became aware that he needed to take steps soon on Extending the lease. Isaac was able to extend his lease at the eleventh hour in June. Isaac and the landlord who owned the flat above eventually agreed on the final figure of £5,000 . If the lease had gone to less than 80 years, the premium would have escalated by a minimum £875.
Last year we were called by Mrs S Wilson , who purchased a first floor flat in Chipping Norton in March 2000. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparative residencies in Chipping Norton with 100 year plus lease were worth £275,000. The average amount of ground rent was £55 billed quarterly. The lease concluded in 2103. Considering the 77 years left we approximated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 not including legals.
Last Christmas we were e-mailed by Mrs Kayleigh White , who completed a garden flat in Chipping Norton in November 1998. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by a further 90 years. Similar premises in Chipping Norton with a long lease were valued about £183,600. The average amount of ground rent was £65 collected monthly. The lease ended on 10 February 2083. Having 57 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £28,500 and £33,000 not including expenses.