Oxton leases on domestic deteriorating in value. if your lease has approximately ninety years left, you should start thinking about a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the existing lease falls under eighty years - otherwise a higher premium will be payable. Flat owners in Oxton will mostly be legally entitled to a lease extension; however It would be wise to check with a lawyer to check if you qualify. In some cases you may not be entitled. There are prescribed timetables and procedures to follow once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold 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 residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Oxton 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 conveyancing solicitor we work with provide it.
After protracted correspondence with the landlord of her two bedroom apartment in Oxton, Phoebe initiated the lease extension process just as the lease was coming close to the crucial 80-year deadline. The legal work completed in November 2005. The landlord’s fees were kept to an absolute minimum.
Dr M Sánchez purchased a basement apartment in Oxton in November 1996. The question was if we could estimate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Oxton with 100 year plus lease were in the region of £265,000. The average ground rent payable was £50 collected every twelve months. The lease elapsed on 26 March 2100. Given that there were 74 years remaining we calculated the premium to the freeholder for the lease extension to be within £9,500 and £11,000 plus costs.
Last year we were approach by Mr Jamie Bernard , who took over the lease of a one bedroom apartment in Oxton in January 2008. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by 90 years. Comparable properties in Oxton with an extended lease were worth £166,400. The average ground rent payable was £60 collected every twelve months. The lease came to a finish in 2080. Given that there were 54 years remaining we calculated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including costs.