Owning a flat usually means owning a lease of the property, which has a finite term of years. your lease will usually be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in East Oxford. Clearly, the term of lease remaining shortens as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be sold or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to extend the lease. Eligible long lease owners in East Oxford have the legal entitlement to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. You should give careful deliberation before putting off your East Oxford lease extension. Holding off the cost now likely increases the price you will ultimately incur to extend your lease
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | 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. |
| 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 |
Lease extensions in East Oxford can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring East Oxford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Trailing lengthy negotiations with the landlord of her first floor flat in East Oxford, Harriet commenced the lease extension process just as her lease was approaching the all-important eighty-year deadline. The transaction completed in January 2013. The freeholder’s costs were restricted to a tad over 500 pounds.
In 2012 we were contacted by Ms L Stewart who, having completed a purpose-built apartment in East Oxford in July 1997. The dilemma was if we could approximate the price would be to extend the lease by an additional years. Similar flats in East Oxford with an extended lease were in the region of £198,800. The mid-range amount of ground rent was £55 collected every twelve months. The lease elapsed in 2080. Having 55 years left we calculated the premium to the landlord for the lease extension to be between £33,300 and £38,400 not including fees.
Dr P Wood bought a studio apartment in East Oxford in July 2006. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical homes in East Oxford with 100 year plus lease were valued around £295,000. The average ground rent payable was £50 invoiced yearly. The lease expired on 28 March 2100. Given that there were 75 years outstanding we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 plus professional charges.