The value of Headington leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate significantly once the remaining term is less than 80 years
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Headington can be a difficult process. We recommend you get professional help from a lawyer and valuer 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 Headington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of unsuccessful discussions with the freeholder of her basement flat in Headington, Gemma initiated the lease extension process as the 80 year mark was fast nearing. The legal work completed in May 2013. The landlord’s charges were restricted to slightly above 500 GBP.
Dr Rebecca Lewis owned a studio apartment in Headington in January 1997. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable properties in Headington with a long lease were in the region of £210,600. The average ground rent payable was £45 invoiced per annum. The lease came to a finish in 2088. Given that there were 62 years unexpired we estimated the premium to the freeholder for the lease extension to be between £18,100 and £20,800 exclusive of legals.
In 2014 we were contacted by Mrs M Garcia who, having bought a purpose-built flat in Headington in January 2003. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Identical flats in Headington with an extended lease were in the region of £265,000. The mid-range ground rent payable was £50 collected per annum. The lease lapsed on 3 January 2099. Having 73 years left we calculated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 plus costs.