The closer a residential lease in Oxton gets to zero years unexpired, the the greater the reduction in the value of the property. Where the residual term has, more than 99 years to run then this decrease may be negligible that being said there will become a stage when a lease has less than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Most flat owners in Oxton will meet the qualifying criteria; that being said a conveyancer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold residencies in Oxton with in excess of one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea Building Society | 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. |
| Coventry Building Society | 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
Engaging our service gives you better control over the value of your Oxton leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Trailing unsuccessful discussions with the landlord of her one bedroom apartment in Oxton, Rebecca commenced the lease extension process just as her lease was coming close to the crucial eighty-year deadline. The lease extension was finalised in April 2013. The freeholder’s fees were restricted to below 550 pounds.
Last month we were approach by Mr and Mrs. S Martin , who completed a first floor flat in Oxton in March 2003. The question was if we could estimate the price could be for a ninety year lease extension. Comparative properties in Oxton with 100 year plus lease were in the region of £260,000. The mid-range ground rent payable was £50 invoiced quarterly. The lease ended on 23 March 2097. Having 72 years remaining we estimated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
In 2014 we were e-mailed by Dr J Young who, having owned a one bedroom apartment in Oxton in August 1998. We are asked if we could estimate the price would be to prolong the lease by 90 years. Identical homes in Oxton with a long lease were in the region of £256,600. The mid-range amount of ground rent was £60 invoiced annually. The lease expiry date was in 2077. Considering the 52 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £39,000 and £45,000 not including fees.