The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in East Oxford may extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please think carefully before delaying your East Oxford lease extension. Putting off that expense today simply escalates the price you will eventually be required to pay to extend the lease.
Leasehold premises in East Oxford with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Using our service will provide you enhanced control over the value of your East Oxford leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
After protracted discussions with the freeholder of her basement apartment in East Oxford, Ashleigh commenced the lease extension process as the 80 year deadline was quickly coming. The transaction completed in April 2012. The landlord’s charges were negotiated to under 550 pounds.
In 2014 we were contacted by Mr M Wilson who, having completed a ground floor apartment in East Oxford in July 2002. We are asked if we could approximate the compensation to the landlord would be for a 90 year extension to my lease. Identical premises in East Oxford with 100 year plus lease were worth £250,400. The mid-range ground rent payable was £65 billed annually. The lease expired in 2090. Given that there were 64 years as a residual term we approximated the premium to the landlord for the lease extension to be within £19,000 and £22,000 plus expenses.
Dr O Hill acquired a garden apartment in East Oxford in August 2005. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by an additional years. Comparative homes in East Oxford with a long lease were valued around £189,000. The mid-range amount of ground rent was £55 invoiced monthly. The lease elapsed in 2079. Given that there were 53 years left we calculated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 exclusive of expenses.