There is no doubt about it a leasehold property in Oswestry is a wasting asset as a result of the diminishing lease term. If the lease has, more than one hundred years to run then this decrease may be fractional however there will become a point in time when a lease has less than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should consider extending sooner than later. Many flat owners in Oswestry will qualify for this right; nevertheless a lawyer can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
Leasehold residencies in Oswestry with more than 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Oswestry lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Subsequent to unsuccessful negotiations with the landlord of her purpose-built flat in Oswestry, Jessica started the lease extension process just as her lease was coming close to the crucial 80-year mark. The legal work completed in August 2009. The landlord’s charges were negotiated to approximately 450 GBP.
Mrs C Clark moved into a one bedroom flat in Oswestry in January 1995. We are asked if we could shed any light on how much (roughly) premium could be to extend the lease by 90 years. Comparable residencies in Oswestry with an extended lease were worth £254,200. The average ground rent payable was £60 billed annually. The lease expired on 23 November 2076. Taking into account 51 years outstanding we approximated the premium to the landlord for the lease extension to be within £43,700 and £50,600 exclusive of professional charges.
Mr and Mrs. S Hill moved into a studio apartment in Oswestry in February 1999. The dilemma was if we could estimate the premium could be to prolong the lease by 90 years. Comparative properties in Oswestry with a long lease were in the region of £210,600. The average amount of ground rent was £45 invoiced annually. The lease finished on 13 February 2087. Taking into account 62 years remaining we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 exclusive of fees.