The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Oadby have the legal entitlement to extend the lease for a further 90 years under legislation. Please think carefully before delaying your Oadby lease extension. Putting off the costs today simply escalates the premium you will eventually be required to pay to extend the lease.
It is conventional wisdom that a residential leasehold with over one hundred 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 property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Oadby 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.
William owned a conversion apartment in Oadby on the market with a lease of just over 61 years left. William on an informal basis spoke with his freeholder a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were William to invoke his statutory right. William obtained expert legal guidance and secured an acceptable deal informally and ending up with a market value flat.
Last Spring we were called by Mr and Mrs. K Robinson , who moved into a one bedroom apartment in Oadby in June 2003. The question was if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable homes in Oadby with 100 year plus lease were valued around £290,000. The average ground rent payable was £45 collected quarterly. The lease came to a finish on 5 July 2098. Given that there were 73 years remaining we estimated the compensation to the landlord to extend the lease to be between £9,500 and £11,000 plus costs.
Ms Bethan Johnson completed a purpose-built flat in Oadby in November 2000. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Identical properties in Oadby with a long lease were in the region of £240,600. The mid-range amount of ground rent was £60 billed yearly. The lease concluded in 2087. Given that there were 62 years unexpired we calculated the compensation to the landlord to extend the lease to be between £21,900 and £25,200 not including costs.