Unfortunately that a Oxted residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the deflation being disguised by increases in the Oxted property prices.Once your lease nears 85ish years, you should start thinking about 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 dips below 80 years - otherwise a higher amount will be due. Most flat owners in Oxted will be able to extend under the legislation; however a conveyancer should be able to clarify whether you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to follow once the process is initiated and you will need to be guided by your lawyer for the duration of the formalities.
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors 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 lawyer we work with provide it.
Subsequent to protracted correspondence with the freeholder of her basement flat in Oxted, Grace started the lease extension process as the 80 year mark was fast approaching. The legal work was concluded in February 2010. The landlord’s fees were negotiated to less than 450 GBP.
Last Christmas we were e-mailed by Mr and Mrs. P Wright , who moved into a recently refurbished apartment in Oxted in August 1998. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparable premises in Oxted with 100 year plus lease were in the region of £210,000. The mid-range amount of ground rent was £50 billed per annum. The lease came to a finish in 2105. Considering the 80 years outstanding we calculated the premium to the freeholder for the lease extension to be within £8,600 and £9,800 plus legals.
In 2012 we were phoned by Ms Hollie Thompson who, having bought a first floor flat in Oxted in September 2007. We are asked if we could shed any light on how much (approximately) compensation to the landlord could be for a ninety year extension to my lease. Comparable properties in Oxted with an extended lease were worth £280,000. The mid-range ground rent payable was £45 invoiced yearly. The lease came to a finish on 25 February 2094. Taking into account 69 years left we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of legals.