The market value of a leasehold property in Oxshott depends on how many years the lease has remaining. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that formalities can be concluded prior to the 80 year mark. Statute enables Oxshott qualifying lessees to obtain a lease extension of 90 years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold properties in Oxshott with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancing solicitors that we work with handle Oxshott lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Half a year ago Sebastian, came critically close to the 80-year mark with the lease on his purpose- built apartment in Oxshott. Having purchased his flat 19 years previously, the lease term was of minimal concern. As luck would have it, he recognised he would imminently be paying way over the odds for Extending the lease. Sebastian extended the lease just ahead of time in July. Sebastian and the landlord who owned the flat above in the end settled on a premium of £5,000 . If he not met the deadline, the price would have become more costly by a minimum £900.
Last Summer we were called by Mr G Green , who purchased a basement apartment in Oxshott in March 2011. We are asked if we could estimate the premium would be for a ninety year lease extension. Comparative residencies in Oxshott with an extended lease were in the region of £255,000. The average ground rent payable was £50 collected annually. The lease end date was in 2096. Given that there were 70 years remaining we approximated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus legals.
An example of a Lease Extension matter before the tribunal for a Oxshott flat is Flat D 15 Claremont Gardens in September 2013. TheTribunal determined in accordance with section48 and Schedule13 of the Leasehold Reform,Housing and Urban Development Act 1993 that the premium for the extended lease should be fourteen thousand one hundred and eighty seven pounds (£14,187.00) This case affected 1 flat.