Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a prescribed period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Oldland. Clearly, the length of lease remaining shortens over time. This is often ignored and only becomes a problem when the flat or house has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Oldland have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Please give due consideration before delaying your Oldland lease extension. Putting off the cost now likely increases the price you will ultimately have to pay to extend your lease
It is generally considered that a residential leasehold with in excess of 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the residence will be worth the same as a freehold for decades to come.
| 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. |
| 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 handle Oldland 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.
Trailing lengthy correspondence with the landlord of her garden flat in Oldland, Rachel initiated the lease extension process as the eighty year threshold was quickly coming. The lease extension was concluded in July 2013. The freeholder’s costs were kept to an absolute minimum.
Mr and Mrs. O Girard completed a one bedroom apartment in Oldland in September 2012. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by a further 90 years. Similar homes in Oldland with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 invoiced quarterly. The lease concluded in 2103. Having 77 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 not including expenses.
In 2010 we were called by Dr U Campbell who, having acquired a one bedroom flat in Oldland in May 2009. We are asked if we could approximate the price could be to extend the lease by ninety years. Similar flats in Oldland with a long lease were valued about £260,200. The average ground rent payable was £65 collected yearly. The lease ran out on 19 March 2092. Taking into account 66 years unexpired we estimated the compensation to the landlord for the lease extension to be within £16,200 and £18,600 exclusive of professional charges.