The re-sale value of a leasehold property in Oxted is impacted by how long the lease has remaining. If it is close to or fewer than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to commence the process of extending the lease is when the lease still has 82 years unexpired so that all matters can be concluded in advance of the 80 year cut off point. Current legislation entitles Oxted qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of 90 years. The reason 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.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancers that we work with procure Oxted 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 conveyancer we work with provide it.
Half a year ago Finn, came seriously near to the 80-year mark with the lease on his ground floor flat in Oxted. In buying his home two decades ago, the length of the lease was of no interest. As luck would have it, he became aware that he would imminently be paying way over the odds for Extending the lease. Finn arranged for a lease extension just ahead of time last January. Finn and the freeholder via the management company in the end agreed on sum of £5,500 . If the lease had gone lower than 80 years, the sum would have increased by at least £1,075.
Last Winter we were approach by Mr and Mrs. I Cook , who bought a ground floor apartment in Oxted in November 2010. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Identical homes in Oxted with 100 year plus lease were valued around £285,000. The mid-range amount of ground rent was £45 collected per annum. The lease expired on 2 October 2097. Considering the 71 years left we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of legals.
In 2011 we were approached by Mr and Mrs. M Young who, having completed a first floor flat in Oxted in April 2011. The question was if we could approximate the compensation to the landlord would be for a 90 year lease extension. Identical premises in Oxted with an extended lease were valued about £230,800. The average amount of ground rent was £60 billed monthly. The lease lapsed in 2086. Given that there were 60 years unexpired we approximated the compensation to the freeholder to extend the lease to be between £24,700 and £28,600 plus legals.