With a long leasehold premises in Kidlington, you are actually purchasing an entitlement to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Residents in Kidlington with a lease drawing near to 81 years remaining should seriously consider extending it as soon as possible. When a lease has under eighty years remaining, under the current legislation the freeholder can calculate and levy a larger premium, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally considered that a residential leasehold with more than 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a landlord in Kidlington,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kidlington valuers.
Off the back of unsuccessful negotiations with the freeholder of her purpose-built flat in Kidlington, Alexandra started the lease extension process just as her lease was nearing the all-important eighty-year threshold. The legal work completed in May 2013. The freeholder’s charges were kept to an absolute minimum.
Ms Katie Ward owned a recently refurbished apartment in Kidlington in August 2004. The question was if we could estimate the premium would be for a 90 year extension to my lease. Similar properties in Kidlington with an extended lease were in the region of £166,400. The mid-range amount of ground rent was £60 collected every twelve months. The lease elapsed in 2080. Given that there were 54 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £32,300 and £37,400 exclusive of costs.
In 2014 we were called by Mr and Mrs. F Johnson who, having owned a first floor apartment in Kidlington in March 2004. We are asked if we could estimate the price would likely be for a 90 year extension to my lease. Similar properties in Kidlington with 100 year plus lease were valued around £227,800. The mid-range amount of ground rent was £45 collected every twelve months. The lease came to a finish on 9 October 2091. Given that there were 65 years unexpired we estimated the compensation to the freeholder for the lease extension to be between £13,300 and £15,400 not including expenses.