Oxton residential property owned on a long lease is a wasting asset because a leaseholder only owns the property for a period of years.
Leasehold properties in Oxton with in excess of 100 years left on the lease are sometimes referred to as ‘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 upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Oxton,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Oxton valuers.
Mason owned a conversion apartment in Oxton being marketed with a lease of just over 72 years remaining. Mason on an informal basis approached his landlord being a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Mason to exercise his statutory right. Mason obtained expert legal guidance and was able to make an informed judgement and handle with the matter and sell the flat.
Dr Eliot Sánchez bought a one bedroom apartment in Oxton in October 2012. We are asked if we could shed any light on how much (approximately) price would be to prolong the lease by ninety years. Identical properties in Oxton with an extended lease were worth £285,000. The mid-range amount of ground rent was £55 invoiced annually. The lease elapsed in 2104. Taking into account 79 years unexpired we estimated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 plus fees.
In 2010 we were e-mailed by Ms Georgina Fournier who, having was assigned a lease of a studio flat in Oxton in July 2002. The question was if we could shed any light on how much (roughly) price would be to extend the lease by 90 years. Comparable homes in Oxton with 100 year plus lease were worth £193,400. The mid-range ground rent payable was £65 invoiced per annum. The lease elapsed on 10 February 2084. Taking into account 59 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £21,900 and £25,200 exclusive of fees.