It’s an underpublicised truth that a Kidlington residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Kidlington property prices.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher amount will be due. Most leasehold owners in Kidlington will be able to extend under the legislation; however a conveyancer should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
Leasehold properties in Kidlington with more than 100 years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | |
| Santander | |
| Skipton Building Society | |
| TSB | |
| The Mortgage Works |
Lease extensions in Kidlington can be a difficult process. We recommend you obtain guidance from a lawyer and valuer with experience in this area.
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 dealing with Kidlington lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Cameron was the the leasehold proprietor of a conversion apartment in Kidlington on the market with a lease of fraction over fifty eight years outstanding. Cameron informally spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 yearly. No ground rent would be due on a lease extension were Cameron to invoke his statutory right. Cameron procured expert legal guidance and was able to make a more informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. I Williams moved into a first floor apartment in Kidlington in February 1996. The question was if we could estimate the premium would be to prolong the lease by 90 years. Comparable homes in Kidlington with a long lease were worth £235,200. The average amount of ground rent was £45 invoiced yearly. The lease expired on 20 October 2092. Taking into account 66 years left we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including expenses.
Last October we were approach by Mr and Mrs. U Sánchez , who bought a purpose-built flat in Kidlington in June 2002. We are asked if we could estimate the price could be for a 90 year lease extension. Similar premises in Kidlington with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £55 billed per annum. The lease came to a finish in 2103. Given that there were 77 years as a residual term we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 not including legals.