Unfortunately that a Kidlington residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Kidlington property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If the number of years remaining falls below eighty years, you will then be required to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property Most flat owners in Kidlington will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a property with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Coventry Building Society | |
| Leeds Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| TSB |
The lawyers that we work with handle Kidlington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Alex owned a studio apartment in Kidlington on the market with a lease of just over 72 years unexpired. Alex informally spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. No ground rent would be due on a lease extension were Alex to invoke his statutory right. Alex 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.
In 2013 we were contacted by Mr and Mrs. D Smith who, having completed a studio flat in Kidlington in September 2010. We are asked if we could approximate the premium could be for a ninety year lease extension. Comparable flats in Kidlington with a long lease were worth £280,000. The average ground rent payable was £55 billed monthly. The lease concluded on 22 May 2104. Having 78 years remaining we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.
Mr and Mrs. N Allen bought a studio flat in Kidlington in August 2000. The dilemma was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparative flats in Kidlington with 100 year plus lease were worth £191,000. The mid-range ground rent payable was £65 collected per annum. The lease came to a finish on 19 June 2084. Given that there were 58 years left we calculated the compensation to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of costs.