When it comes to domestic leasehold property in Oswestry, you are actually buying a right to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may consider a lease extension sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably once there are fewer than eighty years remaining. Residents in Oswestry with a lease approaching 81 years left should seriously think of extending it without delay. Once the lease term has under 80 years left, under the current legislation the landlord can calculate and charge a greater amount, based on a technical calculation, known as “marriage value” which is payable.
Leasehold premises in Oswestry with more than 100 years outstanding 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 premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
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 conveyancer we work with provide it.
Jackson was the the leasehold proprietor of a conversion apartment in Oswestry being sold with a lease of fraction over fifty eight years remaining. Jackson informally approached his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Jackson to exercise his statutory right. Jackson obtained expert advice and was able to make a more informed judgement and handle with the matter and sell the property.
Mr and Mrs. V Brown completed a recently refurbished flat in Oswestry in February 2012. The dilemma was if we could estimate the price would likely be to prolong the lease by ninety years. Comparative properties in Oswestry with an extended lease were valued about £218,000. The mid-range amount of ground rent was £45 invoiced per annum. The lease termination date was on 18 November 2088. Taking into account 63 years remaining we estimated the compensation to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of fees.
Mr and Mrs. H Phillips bought a garden apartment in Oswestry in July 1997. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative homes in Oswestry with 100 year plus lease were in the region of £265,000. The mid-range ground rent payable was £50 collected yearly. The lease expired on 26 July 2099. Having 74 years remaining we estimated the premium to the freeholder for the lease extension to be between £9,500 and £11,000 not including expenses.