For anyone whose Oxted home is held on a long lease, our message is clear – if no remedial action is taken, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension.
It is generally considered that a property with over one hundred 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 |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service gives you increased control over the value of your Oxted leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Half a year ago Seth, came dangerously near to the 80-year threshold with the lease on his leasehold apartment in Oxted. In buying his flat two decades ago, the lease term was of little concern. by good luck, he realised he would imminently be paying an escalated premium for a lease extension. Seth was able to extend his lease just in the nick of time in August. Seth and the freeholder subsequently agreed on an amount of £5,000 . If the lease had gone to less than eighty years, the figure would have become more costly by a minimum £1,050.
In 2012 we were approached by Mr and Mrs. I Baker who, having took over the lease of a studio apartment in Oxted in March 2003. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparative properties in Oxted with 100 year plus lease were in the region of £265,200. The mid-range ground rent payable was £65 billed every twelve months. The lease came to a finish on 25 May 2092. Taking into account 66 years remaining we approximated the compensation to the freeholder for the lease extension to be within £15,200 and £17,600 exclusive of expenses.
Mrs Rachael Norbert owned a garden flat in Oxted in October 1999. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparable properties in Oxted with 100 year plus lease were in the region of £198,800. The average amount of ground rent was £55 invoiced per annum. The lease expiry date was on 27 June 2081. Considering the 55 years left we calculated the compensation to the landlord for the lease extension to be within £33,300 and £38,400 plus expenses.