The market value of a leasehold property in Headington depends on how long the lease has remaining. If it is near to or fewer than 80 years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the lease extension process when a lease still has 82 years to run so that all matters can be addressed in advance of the 80 year mark. Leasehold Reform legislation enables Headington qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a landlord in Headington,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Headington valuers.
Trailing lengthy correspondence with the freeholder of her leasehold flat in Headington, Sophie commenced the lease extension process just as the lease was coming close to the all-important 80-year mark. The transaction was finalised in November 2012. The freeholder’s charges were negotiated to approximately 650 GBP.
In 2011 we were approached by Mrs Francesca Walker who, having bought a garden flat in Headington in May 2008. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparable homes in Headington with 100 year plus lease were in the region of £265,000. The average ground rent payable was £50 collected yearly. The lease terminated on 25 February 2099. Having 74 years remaining we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of professional charges.
In 2014 we were phoned by Ms Paige Leroy who, having completed a studio flat in Headington in August 2000. The question was if we could estimate the compensation to the landlord could be for a 90 year lease extension. Similar premises in Headington with an extended lease were in the region of £166,400. The average amount of ground rent was £60 collected quarterly. The lease elapsed on 17 March 2079. Given that there were 54 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £32,300 and £37,400 exclusive of costs.