Oxford leases on residential properties are gradually losing value. Where your lease has approximately ninety years remaining, you should start thinking about a lease extension. If lease term is under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Oxford will mostly qualify for a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain cases you may not qualify. There are prescribed deadlines and procedures to comply with once the process has started so it’s sensible to be guided by a conveyancing solicitor during the process.
It is generally accepted that a property with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Coventry Building Society | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 |
| 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 Oxford can be a difficult process. We recommend you procure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
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 in-depth market knowledge procuring Oxford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Leo owned a studio apartment in Oxford on the market with a lease of just over sixty years remaining. Leo informally contacted his freeholder being a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Leo to invoke his statutory right. Leo procured expert advice and was able to make a more informed judgement and deal with the matter and readily saleable.
Mr and Mrs. T Cook was assigned a lease of a first floor apartment in Oxford in March 2000. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Similar flats in Oxford with a long lease were worth £210,000. The mid-range ground rent payable was £50 collected annually. The lease finished in 2106. Having 80 years unexpired we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus costs.
In 2014 we were e-mailed by Mr and Mrs. A Mitchell who, having moved into a purpose-built flat in Oxford in June 2009. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable properties in Oxford with a long lease were in the region of £280,000. The average amount of ground rent was £45 billed per annum. The lease concluded in 2095. Taking into account 69 years outstanding we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 not including fees.