The re-sale value of a leasehold property in Kidlington is impacted by how long the lease has remaining. If it is close to or less than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years unexpired so that all matters can be addressed ahead of the 80 year threshold. Leasehold Reform legislation entitles Kidlington qualifying lessees to an additional term of 90 years over and above the remaining term, at a nominal rent (no ground rent). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Kidlington valuers.
Last October Owen, started to get close to the 80-year mark with the lease on his leasehold flat in Kidlington. In buying his property two decades ago, the unexpired term was of little interest. by good luck, he became aware that he would imminently be paying an escalated premium for a lease extension. Owen was able to extend his lease just under the wire in March. Owen and the freeholder ultimately agreed on sum of £5,000 . If the lease had dropped to less than 80 years, the premium would have increased by at least £925.
In 2011 we were approached by Mr Aiden Simon who, having was assigned a lease of a one bedroom apartment in Kidlington in May 2009. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by an additional years. Similar premises in Kidlington with an extended lease were worth £265,000. The average ground rent payable was £50 collected quarterly. The lease expired in 2098. Taking into account 73 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
In 2009 we were e-mailed by Dr H Davies who, having completed a garden flat in Kidlington in September 2009. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar residencies in Kidlington with an extended lease were in the region of £264,000. The average ground rent payable was £60 billed yearly. The lease elapsed on 20 September 2078. Considering the 53 years outstanding we estimated the premium to the freeholder for the lease extension to be within £37,100 and £42,800 exclusive of expenses.