The closer a residential lease in Oldbury gets to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, in excess of one hundred years to run then this decrease may be fractional that being said there will become a point in time when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should consider extending without delay. The majority of flat owners in Oldbury will meet the qualifying criteria; however a conveyancer will be able to confirm if you are eligible to extend your lease. In limited 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 more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
The conveyancers that we work with procure 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 conveyancer we work with provide it.
Off the back of lengthy negotiations with the freeholder of her one bedroom apartment in Oldbury, Lily started the lease extension process as the eighty year mark was swiftly advancing. The legal work completed in June 2007. The landlord’s costs were negotiated to a tad over 550 GBP.
Last Winter we were called by Mr and Mrs. O Anderson , who was assigned a lease of a recently refurbished flat in Oldbury in February 2007. The dilemma was if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar premises in Oldbury with an extended lease were in the region of £295,000. The average amount of ground rent was £45 billed monthly. The lease concluded in 2099. Considering the 74 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 not including costs.
In 2011 we were phoned by Dr L Dupont who, having acquired a recently refurbished flat in Oldbury in September 1995. We are asked if we could approximate the price would likely be to prolong the lease by an additional years. Identical flats in Oldbury with a long lease were valued about £248,000. The average amount of ground rent was £65 collected every twelve months. The lease came to a finish on 23 February 2088. Taking into account 63 years left we estimated the premium to the freeholder to extend the lease to be between £20,000 and £23,000 not including professional charges.