East Oxford leases on residential deteriorating in value. Where your lease has in the region of ninety years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start incurring an additional element called marriage value. Leasehold owners in East Oxford will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 30 years unexpired, the premises will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancers that we work with undertake East Oxford lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last October Sam, came critically near to the 80-year mark with the lease on his first floor flat in East Oxford. Having purchased his property twenty years previously, the lease term was of no interest. Luckily, he realised he needed to take action soon on a lease extension. Sam was able to extend his lease just under the wire last July. Sam and the freeholder eventually settled on an amount of £6,000 . If the lease had fallen below 80 years, the amount would have become more costly by at least £1,025.
In 2011 we were approached by Mr Milo Thomas who, having owned a purpose-built apartment in East Oxford in April 2009. We are asked if we could approximate the premium could be for a ninety year lease extension. Identical residencies in East Oxford with an extended lease were valued about £240,600. The mid-range ground rent payable was £60 collected quarterly. The lease expired on 21 September 2088. Considering the 62 years remaining we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of fees.
Last Autumn we were called by Dr Georgia Roux , who bought a first floor flat in East Oxford in September 1995. We are asked if we could approximate the price could be to extend the lease by a further 90 years. Identical homes in East Oxford with an extended lease were worth £174,200. The mid-range ground rent payable was £55 billed every twelve months. The lease expiry date was on 26 July 2077. Taking into account 51 years outstanding we estimated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including expenses.