Onslow Village leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Legislation has been in place for sometime now which entitles qualifying Onslow Village residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Onslow Village you must investigate if your lease has between 70 and ninety years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
Leasehold residencies in Onslow Village with in excess of one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Retaining our service will provide you increased control over the value of your Onslow Village leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of 6 months of unsuccessful discussions with the freeholder of her ground floor apartment in Onslow Village, Madeleine initiated the lease extension process just as the lease was nearing the critical 80-year mark. The legal work was concluded in November 2015. The landlord’s costs were kept to an absolute minimum.
Last month we were phoned by Dr F Stewart , who moved into a first floor apartment in Onslow Village in April 2006. The question was if we could approximate the premium could be for a ninety year lease extension. Identical flats in Onslow Village with a long lease were worth £210,000. The average ground rent payable was £50 invoiced every twelve months. The lease expired on 1 September 2105. Having 80 years left we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 not including expenses.
Last year we were approach by Ms N Sharif , who bought a studio apartment in Onslow Village in August 2011. We are asked if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Identical premises in Onslow Village with a long lease were worth £280,000. The mid-range ground rent payable was £45 billed per annum. The lease expired in 2094. Given that there were 69 years unexpired we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of professional charges.