Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will ordinarily be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Oldbury. Clearly, the term of lease left reduces over time. This is often ignored and only becomes a problem when the residence needs to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Eligible long lease owners in Oldbury have the right to extend the lease for a further ninety years under the 1993 Leasehold Reform Act. You should give due consideration before delaying your Oldbury lease extension. Putting off the cost now simply increases the price you will ultimately have to pay to extend your lease
Leasehold premises in Oldbury with over 100 years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Lease extensions in Oldbury can be a difficult process. We recommend you obtain guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Oldbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the freeholder of her one bedroom flat in Oldbury, Katie started the lease extension process just as the lease was approaching the critical 80-year threshold. The lease extension was concluded in September 2010. The landlord’s fees were kept to an absolute minimum.
Last February we were approach by Mr Aiden Miller , who owned a ground floor apartment in Oldbury in March 1997. We are asked if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Similar residencies in Oldbury with 100 year plus lease were in the region of £218,400. The mid-range amount of ground rent was £60 invoiced per annum. The lease ended on 1 March 2085. Given that there were 59 years outstanding we estimated the compensation to the landlord to extend the lease to be between £27,600 and £31,800 plus fees.
Mrs K Petit owned a first floor apartment in Oldbury in April 2012. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar premises in Oldbury with an extended lease were in the region of £205,000. The mid-range ground rent payable was £50 invoiced every twelve months. The lease ended in 2105. Considering the 79 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £7,600 and £8,800 exclusive of costs.