Oswestry leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Oswestry tenants have the right to extend their lease by an additional ninety years by virtue of the 1993 Leasehold Reform Act. Where you are a leasehold owner in Oswestry you must check if your lease has between seventy and ninety years left. There are good reasons why a Oswestry flat owner with a lease having around 80 years left should take steps to make sure that a lease extension is actioned without delay
It is generally considered that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 Oswestry can be a difficult process. We recommend you obtain professional help from a lawyer and valuer with experience in lease extensions.
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 a wealth of experience dealing with Oswestry lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Off the back of protracted negotiations with the landlord of her garden apartment in Oswestry, Lydia commenced the lease extension process just as her lease was nearing the crucial eighty-year threshold. The legal work completed in October 2006. The landlord’s charges were kept to an absolute minimum.
In 2010 we were contacted by Dr Freya Thomas who, having purchased a studio apartment in Oswestry in May 1996. The question was if we could approximate the premium would likely be to extend the lease by ninety years. Similar flats in Oswestry with a long lease were valued around £250,000. The mid-range amount of ground rent was £50 billed annually. The lease came to a finish in 2095. Having 70 years left we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus professional charges.
Mr U Howard purchased a one bedroom apartment in Oswestry in June 2001. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Identical premises in Oswestry with an extended lease were in the region of £246,800. The mid-range amount of ground rent was £60 billed quarterly. The lease ran out on 14 November 2075. Given that there were 50 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 plus professional charges.