The only way is down when it comes to Oundle lease terms. Oundle leaseholds that have a residual term fewer than 80 years will de-escalate in value at a rapid rate, and the cost of extending your lease will rise.
Leasehold properties in Oundle with over one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Retaining our service gives you increased control over the value of your Oundle leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last October Finley, came critically near to the eighty-year threshold with the lease on his one bedroom flat in Oundle. Having bought his flat 19 years previously, the unexpired term was of little significance. Fortunately, he became aware that he would imminently be paying way over the odds for Extending the lease. Finley was able to extend his lease at the eleventh hour in May. Finley and the freeholder subsequently agreed on an amount of £6,000 . If the lease had dipped below 80 years, the premium would have escalated by a minimum £1,075.
In 2013 we were contacted by Mr and Mrs. N Michel who, having took over the lease of a ground floor apartment in Oundle in June 2007. The question was if we could approximate the price could be for a ninety year extension to my lease. Identical properties in Oundle with a long lease were valued around £237,600. The mid-range amount of ground rent was £45 invoiced yearly. The lease concluded in 2092. Considering the 67 years remaining we calculated the compensation to the freeholder for the lease extension to be within £11,400 and £13,200 not including professional charges.
Mr and Mrs. L Leroy owned a first floor flat in Oundle in August 2003. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by a further 90 years. Comparable properties in Oundle with an extended lease were valued about £280,000. The average amount of ground rent was £55 invoiced annually. The lease lapsed in 2103. Given that there were 78 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £13,300 and £15,400 exclusive of professional charges.