Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will normally be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Oswestry. Inevitably, the length of lease left reduces as time goes by. This is often overlooked and only raises itself as an issue when the flat or house needs to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Oswestry have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give careful consideration before putting off your Oswestry lease extension. Putting off that expense now only increases the price you will eventually incur to extend your lease
Leasehold premises in Oswestry with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit 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. |
| Bank of Scotland | 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. |
| 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. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Engaging our service will provide you better control over the value of your Oswestry leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
James owned a 2 bedroom flat in Oswestry on the market with a lease of a few days over 59 years remaining. James informally approached his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were James to exercise his statutory right. James procured expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
Mr J Martínez took over the lease of a first floor flat in Oswestry in June 1997. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Similar residencies in Oswestry with a long lease were valued about £270,000. The mid-range ground rent payable was £55 billed yearly. The lease ran out on 4 July 2101. Considering the 75 years as a residual term we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.
In 2012 we were approached by Mrs W Sánchez who, having took over the lease of a first floor apartment in Oswestry in April 2010. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by 90 years. Identical flats in Oswestry with 100 year plus lease were in the region of £168,800. The mid-range amount of ground rent was £60 invoiced monthly. The lease terminated in 2081. Considering the 55 years remaining we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 plus costs.