There is no doubt about it a leasehold flat or house in Oxton is a wasting asset as a result of the shortening lease. Where the lease has, beyond 100 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner rather than later. Most flat owners in Oxton will meet the qualifying criteria; however a conveyancer should be able to advise whether you qualify to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the residence will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Yorkshire 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. |
Retaining our service gives you increased control over the value of your Oxton leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Adam, came very near to the eighty-year mark with the lease on his ground floor apartment in Oxton. In buying his property two decades ago, the lease term was of no importance. Thankfully, he noticed he needed to take action soon on a lease extension. Adam extended the lease just in the nick of time in May. Adam and the freeholder eventually agreed on an amount of £5,000 . If the lease had slid to less than 80 years, the price would have escalated by at least £950.
Last Christmas we were called by Mr and Mrs. W Jackson , who purchased a basement apartment in Oxton in January 2007. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar flats in Oxton with 100 year plus lease were worth £237,600. The average ground rent payable was £45 billed every twelve months. The lease came to a finish on 1 April 2093. Having 67 years as a residual term we estimated the premium to the landlord to extend the lease to be within £11,400 and £13,200 exclusive of fees.
Last Summer we were called by Ms Kirsty David , who completed a ground floor apartment in Oxton in August 2004. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Comparative residencies in Oxton with 100 year plus lease were valued around £280,000. The mid-range amount of ground rent was £55 billed yearly. The lease came to a finish in 2104. Taking into account 78 years outstanding we calculated the compensation to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of costs.