Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Kidlington. Inevitably, the term of lease left reduces as time goes by. This may slip by relatively unnoticed when the residence needs to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Qualifying leaseholders in Kidlington have the right to extend the lease for an additional 90 years under the 1993 Leasehold Reform Act. Please give due attention before delaying your Kidlington lease extension. Putting off the cost now likely increases the price you will ultimately have to pay to extend your lease
Leasehold residencies in Kidlington with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
Engaging our service gives you enhanced control over the value of your Kidlington leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Thomas was the the leasehold owner of a conversion flat in Kidlington on the market with a lease of just over 72 years outstanding. Thomas on an informal basis contacted his landlord being a well known London-based freehold company for a lease extension. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Thomas to invoke his statutory right. Thomas obtained expert legal guidance and secured an acceptable deal informally and readily saleable.
Last year we were approach by Dr William Norbert , who bought a one bedroom flat in Kidlington in March 2011. We are asked if we could estimate the compensation to the landlord would be to prolong the lease by a further 90 years. Similar properties in Kidlington with an extended lease were valued around £261,600. The mid-range ground rent payable was £60 billed yearly. The lease terminated in 2078. Taking into account 52 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £39,000 and £45,000 plus professional charges.
Last Winter we were phoned by Mr Y Cook , who bought a recently refurbished flat in Kidlington in May 2012. We are asked if we could estimate the premium would be to extend the lease by ninety years. Similar properties in Kidlington with an extended lease were worth £218,000. The average ground rent payable was £45 invoiced monthly. The lease concluded in 2089. Having 63 years as a residual term we estimated the premium to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of professional charges.