As the length of the unexpired term of a Oundle domestic lease decreases so does its value and therefore the value of your property. If the lease has, over 99 years to run then this decrease may be fractional however there will become a point in time when a lease has less than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should extend the lease without delay. Many flat owners in Oundle will qualify for this right; nevertheless a lawyer can advise whether you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Oundle with more than 100 years unexpired on the lease are sometimes regarded as a ‘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 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. |
| Birmingham Midshires | 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 be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Irrespective of whether you are a tenant or a freeholder in Oundle,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Oundle valuers.
Two years ago Teddy, came critically close to the eighty-year mark with the lease on his two bedroom flat in Oundle. Having purchased his home two decades ago, the length of the lease was of little importance. Luckily, he noticed he needed to take steps soon on a lease extension. Teddy was able to extend his lease at the eleventh hour last September. Teddy and the freeholder via the managing agents eventually agreed on a premium of £5,000 . If he not met the deadline, the amount would have become more exhorbitant by a minimum £925.
Mr Ethan Collins acquired a purpose-built flat in Oundle in October 2006. The question was if we could approximate the price could be for a 90 year lease extension. Comparable premises in Oundle with 100 year plus lease were in the region of £227,800. The mid-range ground rent payable was £45 invoiced per annum. The lease came to a finish in 2091. Given that there were 65 years remaining we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.
In 2011 we were e-mailed by Mr and Mrs. B Peterson who, having acquired a one bedroom apartment in Oundle in September 2008. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Identical flats in Oundle with an extended lease were in the region of £270,000. The average ground rent payable was £55 invoiced quarterly. The lease concluded in 2102. Having 76 years unexpired we approximated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including costs.