As the length of the unexpired term of a Oxted residential lease decreases so does its value and therefore the value of your property. Where the lease has, more than one hundred years remaining then this decrease may be of little impact that being said there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Oxted will meet the qualifying criteria; that being said a lawyer can advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Oxted with more than one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Birmingham Midshires | |
| The Mortgage Works | |
| Virgin | |
| Yorkshire Building Society |
The lawyers that we work with handle 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.
Kian was the the leasehold proprietor of a studio apartment in Oxted on the market with a lease of just over fifty eight years unexpired. Kian informally spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Kian to invoke his statutory right. Kian obtained expert legal guidance and secured an acceptable deal without going to tribunal and readily saleable.
Mr and Mrs. R Morris took over the lease of a first floor flat in Oxted in June 2009. The question was if we could estimate the price could be to extend the lease by ninety years. Similar properties in Oxted with 100 year plus lease were in the region of £205,000. The average amount of ground rent was £50 collected monthly. The lease came to a finish in 2104. Considering the 78 years unexpired we estimated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including legals.
Mrs Amber Harris purchased a one bedroom apartment in Oxted in February 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by an additional years. Similar properties in Oxted with a long lease were valued around £267,600. The average ground rent payable was £65 billed quarterly. The lease ended in 2093. Taking into account 67 years left we estimated the compensation to the freeholder for the lease extension to be between £14,300 and £16,400 plus fees.