The re-sale value of a leasehold property in Onslow Village depends on how long the lease has left to run. If it is close to or fewer than 80 years you should foresee problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years remaining so that all matters can be addressed well before the eighty year mark. Statute entitles Onslow Village qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of ninety years. The intention of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Onslow Village with in excess of one hundred 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 purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Onslow Village can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 Onslow Village 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 negotiations with the freeholder of her two bedroom flat in Onslow Village, Catherine started the lease extension process just as her lease was approaching the critical eighty-year threshold. The lease extension was finalised in August 2005. The freeholder’s charges were negotiated to below 550 GBP.
Mr and Mrs. O Gray was assigned a lease of a studio apartment in Onslow Village in February 1997. The question was if we could approximate the compensation to the landlord would be to extend the lease by ninety years. Comparable flats in Onslow Village with a long lease were in the region of £216,000. The average amount of ground rent was £60 billed per annum. The lease ended on 22 April 2084. Taking into account 58 years as a residual term we calculated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 not including fees.
Mrs Stephanie Mitchell took over the lease of a studio apartment in Onslow Village in October 2011. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by ninety years. Comparable residencies in Onslow Village with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 invoiced every twelve months. The lease came to a finish on 23 May 2105. Given that there were 79 years unexpired we calculated the premium to the freeholder for the lease extension to be within £7,600 and £8,800 plus fees.