It’s a harsh truth that a Oxford residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Oxford property prices.Once your lease nears 85ish years, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher premium will be due. Most flat owners in Oxford will be able to extend under the legislation; however a conveyancer will be able to confirm if you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer for the duration of the formalities.
It is generally accepted that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Nationwide Building Society |
Regardless of whether you are a tenant or a landlord in Oxford,the lease extension lawyers 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 Oxford valuers.
Half a year ago Sam, came precariously near to the eighty-year mark with the lease on his studio flat in Oxford. In buying his home two decades ago, the unexpired term was of little concern. As luck would have it, he became aware that he needed to take action soon on a lease extension. Sam extended the lease just in the nick of time in June. Sam and the landlord who owned the flat above subsequently agreed on a premium of £6,000 . If he not met the deadline, the sum would have gone up by at least £1,150.
Last month we were phoned by Dr Tommy Bell , who acquired a newly refurbished flat in Oxford in April 1997. The question was if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year lease extension. Comparable premises in Oxford with a long lease were valued around £290,000. The average ground rent payable was £45 invoiced monthly. The lease elapsed in 2099. Given that there were 73 years as a residual term we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus expenses.
Mr and Mrs. V Ramírez acquired a purpose-built flat in Oxford in May 2005. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Identical properties in Oxford with a long lease were valued around £240,600. The average ground rent payable was £60 collected every twelve months. The lease ended on 26 September 2088. Given that there were 62 years remaining we approximated the compensation to the freeholder for the lease extension to be between £21,900 and £25,200 not including fees.