It’s an underpublicised certainty that a Onslow Village residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the loss of value being disguised by increases in the Onslow Village property market.Where your lease has approximately ninety years left, you need to start considering a lease extension. If lease term drops under eighty years, you will end up paying 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property The majority of flat owners in Onslow Village will be able to extend under the legislation; however a conveyancer should be able to clarify if you qualify for an extension. In some situations you may not qualify. There are also strict deadlines and procedures to follow once the process has commenced and you will need to be guided by your conveyancer throughout the formalities.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Retaining our service gives you increased control over the value of your Onslow Village leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Ethan, started to get near to the 80-year threshold with the lease on his ground floor flat in Onslow Village. Having bought his home 19 years ago, the length of the lease was of no significance. Luckily, he recognised he needed to take action soon on Extending the lease. Ethan extended the lease at the eleventh hour last July. Ethan and the landlord who owned the flat above eventually settled on an amount of £5,500 . If the lease had gone lower than 80 years, the price would have become more costly by a minimum £875.
Last year we were phoned by Dr Matthew Moreau , who bought a garden apartment in Onslow Village in October 2006. The question was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative homes in Onslow Village with an extended lease were worth £275,000. The mid-range amount of ground rent was £45 collected yearly. The lease concluded on 21 August 2095. Taking into account 69 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 exclusive of expenses.
Last Christmas we were phoned by Dr V Cook , who purchased a basement flat in Onslow Village in October 1998. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Comparative premises in Onslow Village with an extended lease were in the region of £216,000. The mid-range ground rent payable was £60 invoiced monthly. The lease terminated on 26 June 2084. Considering the 58 years left we approximated the premium to the freeholder for the lease extension to be between £28,500 and £33,000 plus professional charges.