Headington leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Most owners of residential leasehold property in Headington enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Headington you must check if your lease has between seventy and 90 years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you enhanced control over the value of your Headington leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Trailing protracted discussions with the freeholder of her basement flat in Headington, Ella started the lease extension process just as her lease was coming close to the crucial 80-year deadline. The legal work was finalised in January 2012. The freeholder’s fees were restricted to below 550 pounds.
Mrs Danielle Lefebvre was assigned a lease of a recently refurbished apartment in Headington in September 2008. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Similar residencies in Headington with a long lease were in the region of £220,400. The mid-range amount of ground rent was £45 invoiced quarterly. The lease terminated in 2090. Having 64 years unexpired we calculated the compensation to the landlord for the lease extension to be between £16,200 and £18,600 plus professional charges.
In 2009 we were phoned by Mr and Mrs. B Anderson who, having took over the lease of a basement flat in Headington in November 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by a further 90 years. Comparable flats in Headington with 100 year plus lease were in the region of £270,000. The average ground rent payable was £55 invoiced every twelve months. The lease concluded on 6 May 2101. Considering the 75 years left we calculated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.