The only way is down when it comes to Oldbury lease terms. Oldbury properties that have a remaining term lower than 80 years will drop in value at a rapid rate, and the cost of extending your lease will increase.
It is generally accepted that a property with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Oldbury 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.
Archie was the the leasehold owner of a high value apartment in Oldbury on the market with a lease of just over 61 years remaining. Archie on an informal basis contacted his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Archie to invoke his statutory right. Archie obtained expert advice and secured an acceptable resolution informally and sell the property.
In 2011 we were called by Dr G Mason who, having moved into a one bedroom flat in Oldbury in May 2011. The question was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparative premises in Oldbury with a long lease were in the region of £210,000. The average amount of ground rent was £50 billed yearly. The lease elapsed in 2104. Having 79 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.
Ms D García moved into a one bedroom apartment in Oldbury in April 2007. The question was if we could approximate the price would likely be to prolong the lease by a further 90 years. Identical flats in Oldbury with a long lease were in the region of £275,000. The average amount of ground rent was £45 billed quarterly. The lease lapsed on 13 June 2093. Considering the 68 years left we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of legals.