As the the remaining lease term of a Oadby domestic lease lessens so does its value and therefore the value of your property. If the residual term has, in excess of 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease sooner than later. The majority of flat owners in Oadby will meet the qualifying criteria; that being said a lawyer should be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold 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 |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you better control over the value of your Oadby leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last October Luke, came dangerously close to the 80-year threshold with the lease on his first floor apartment in Oadby. In buying his property two decades ago, the unexpired term was of minimal importance. Luckily, he realised he would soon be paying an inflated amount for Extending the lease. Luke arranged for a lease extension just ahead of time in April. Luke and the freeholder via the management company subsequently agreed on a premium of £5,000 . If the lease had fallen to less than 80 years, the sum would have escalated by at least £1,125.
Last Summer we were phoned by Mrs Katie Laurent , who completed a garden flat in Oadby in May 2009. The question was if we could shed any light on how much (approximately) price would likely be to prolong the lease by 90 years. Comparative flats in Oadby with an extended lease were in the region of £174,200. The mid-range ground rent payable was £55 collected yearly. The lease elapsed on 13 June 2077. Taking into account 51 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 plus costs.
Last Autumn we were approach by Mrs S Collins , who moved into a studio apartment in Oadby in July 1999. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Similar flats in Oadby with 100 year plus lease were worth £285,000. The mid-range amount of ground rent was £45 billed monthly. The lease finished on 19 September 2097. Having 71 years as a residual term we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 not including costs.