The re-sale value of a leasehold property in Onslow Village is impacted by how long the lease has left to run. If it is close to or less than eighty years you should foresee problems on re-sale, so it is advisable to arrange for a lease extension before purchasing. Ideally one should start the lease extension process when a lease still has 82 years remaining so that formalities can be addressed in advance of the eighty year threshold. Statute enables Onslow Village qualifying lessees to obtain a lease extension of 90 years on top of the remaining lease term at a peppercorn rent (that is, rent free). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold premises in Onslow Village with over one hundred years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 procure professional help from a conveyancing solicitor and valuer 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 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.
After protracted discussions with the freeholder of her first floor flat in Onslow Village, Phoebe started the lease extension process as the 80 year deadline was fast nearing. The legal work was concluded in August 2010. The freeholder’s fees were negotiated to less than 700 GBP.
Last month we were approach by Mr and Mrs. I Jones , who took over the lease of a purpose-built flat in Onslow Village in February 1999. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Similar homes in Onslow Village with 100 year plus lease were valued around £233,200. The mid-range ground rent payable was £60 billed yearly. The lease came to a finish on 25 November 2086. Taking into account 61 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 plus fees.
In 2012 we were phoned by Dr H Scott who, having took over the lease of a purpose-built flat in Onslow Village in August 2009. The question was if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Identical homes in Onslow Village with 100 year plus lease were in the region of £171,800. The mid-range amount of ground rent was £55 collected annually. The lease elapsed in 2075. Considering the 50 years left we estimated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 exclusive of legals.