The market value of a leasehold property in Headington is impacted by how many years the lease has left to run. If it is close to or less than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for the lease to be extended prior to purchasing. It is ideal to start the lease extension process when a lease still has 82 years unexpired so that formalities can be addressed in advance of the 80 year mark. Leasehold Reform legislation entitles Headington qualifying lessees to acquire a lease extension of 90 years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The reason of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Headington with over one hundred years left on the lease are often 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 to be gained by purchasing the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Chelsea Building Society | |
| Nationwide Building Society | |
| Santander | |
| The Mortgage Works |
Lease extensions in Headington can be a difficult process. We recommend you get guidance from a conveyancing solicitor 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 a wealth of experience procuring Headington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last year Callum, came very near to the 80-year threshold with the lease on his basement apartment in Headington. In buying his flat 19 years ago, the length of the lease was of little concern. Luckily, he became aware that he would imminently be paying way over the odds for a lease extension. Callum was able to extend his lease just under the wire in September. Callum and the freeholder subsequently settled on an amount of £5,500 . If he failed to meet the deadline, the sum would have become more exhorbitant by a minimum £975.
In 2014 we were contacted by Mr and Mrs. I Davies who, having moved into a one bedroom apartment in Headington in June 2012. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Identical premises in Headington with 100 year plus lease were valued about £275,000. The average ground rent payable was £55 collected every twelve months. The lease termination date was on 14 May 2102. Taking into account 76 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £9,500 and £11,000 exclusive of legals.
In 2011 we were contacted by Mr and Mrs. G Clark who, having took over the lease of a first floor flat in Headington in November 2011. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by an additional years. Comparative properties in Headington with 100 year plus lease were in the region of £176,200. The mid-range amount of ground rent was £65 invoiced per annum. The lease end date was in 2082. Considering the 56 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £29,500 and £34,000 plus legals.