Unfortunately that a Oxted residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Oxted property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. If lease term slips under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of flat owners in Oxted will be able to extend under the legislation; however a conveyancer will be able to confirm if you are eligibility. In some cases you may not be entitled. There are also strict deadlines and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer from beginning to end of the formalities.
Leasehold residencies in Oxted with over 100 years unexpired on the lease are often 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 maintenance 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Retaining our service gives you enhanced control over the value of your Oxted leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Mason was the the leasehold owner of a 2 bedroom flat in Oxted on the market with a lease of a little over 59 years left. Mason informally contacted his landlord a well known Manchester-based freehold company for a lease extension. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Mason to invoke his statutory right. Mason obtained expert advice and secured satisfactory deal without going to tribunal and ending up with a market value flat.
Last Autumn we were approach by Mr and Mrs. F Mercier , who bought a ground floor flat in Oxted in June 2001. The dilemma was if we could approximate the premium would likely be to prolong the lease by ninety years. Similar homes in Oxted with 100 year plus lease were worth £233,200. The average ground rent payable was £60 invoiced yearly. The lease ended in 2087. Considering the 61 years unexpired we estimated the premium to the freeholder to extend the lease to be between £22,800 and £26,400 exclusive of professional charges.
Mr and Mrs. P Gray purchased a garden flat in Oxted in June 2005. The question was if we could approximate the price would likely be for a ninety year lease extension. Similar flats in Oxted with an extended lease were in the region of £171,800. The average ground rent payable was £55 billed quarterly. The lease came to a finish in 2076. Having 50 years outstanding we calculated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 exclusive of fees.