Kidlington leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. It is the case that most Kidlington tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Kidlington you would be well advised to see if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Godiva Mortgages | 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Retaining our service will provide you enhanced control over the value of your Kidlington leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following lengthy discussions with the landlord of her garden apartment in Kidlington, Isabelle initiated the lease extension process just as her lease was coming close to the critical eighty-year mark. The lease extension was finalised in August 2009. The freeholder’s fees were kept to an absolute minimum.
Last Christmas we were e-mailed by Mr and Mrs. E Lewis , who took over the lease of a first floor flat in Kidlington in June 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Identical premises in Kidlington with a long lease were in the region of £275,000. The mid-range amount of ground rent was £55 invoiced annually. The lease expiry date was on 8 October 2101. Given that there were 76 years left we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of costs.
Mr and Mrs. J Williams acquired a newly refurbished flat in Kidlington in September 2008. We are asked if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparative properties in Kidlington with 100 year plus lease were worth £176,200. The average ground rent payable was £65 collected per annum. The lease ran out on 3 September 2081. Taking into account 56 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £29,500 and £34,000 exclusive of costs.