As the the remaining lease term of a Oldland residential lease lessens so does its value and therefore the value of your property. If the lease has, beyond 100 years remaining then this decrease may be of little impact that being said there will become a stage when a lease has under than 80 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 primary rational as to why you should extend the lease sooner rather than later. Many flat owners in Oldland will meet the qualifying criteria; that being said a conveyancing solicitor can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is generally considered that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Oldland can be a difficult process. We recommend you get 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 a wealth of experience dealing with Oldland lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy correspondence with the landlord of her two bedroom apartment in Oldland, Molly commenced the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The lease extension was concluded in April 2012. The landlord’s charges were kept to an absolute minimum.
Dr N Edwards moved into a one bedroom apartment in Oldland in November 2009. The dilemma was if we could approximate the price could be for a 90 year extension to my lease. Identical properties in Oldland with an extended lease were valued about £166,800. The average amount of ground rent was £50 invoiced every twelve months. The lease ran out on 11 January 2076. Having 50 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £32,300 and £37,400 plus costs.
In 2011 we were e-mailed by Mrs U Phillips who, having purchased a studio apartment in Oldland in August 1996. The question was if we could estimate the premium would be to extend the lease by an additional years. Identical flats in Oldland with a long lease were worth £280,000. The average amount of ground rent was £45 collected every twelve months. The lease lapsed in 2096. Considering the 70 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.