The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Oxton can extend the lease for a further ninety years in accordance with statute. Please give careful consideration before delaying your Oxton lease extension. Shelving the costs now simply increases the amount you will eventually be required to pay for a lease extension.
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 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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. |
The conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
Two years ago Andrew, started to get close to the 80-year threshold with the lease on his ground floor flat in Oxton. Having purchased his property 18 years previously, the unexpired term was of no bearing. Luckily, it dawned on him that he would imminently be paying way over the odds for a lease extension. Andrew arranged for a lease extension at the eleventh hour in January. Andrew and the landlord who owned the flat above subsequently settled on the final figure of £5,500 . If he failed to meet the deadline, the figure would have escalated by at least £1,100.
Mr Alexander Ali purchased a ground floor apartment in Oxton in August 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to extend the lease by 90 years. Comparative residencies in Oxton with 100 year plus lease were valued around £264,000. The mid-range amount of ground rent was £60 billed monthly. The lease elapsed in 2078. Taking into account 53 years unexpired we estimated the premium to the landlord for the lease extension to be between £37,100 and £42,800 plus expenses.
Mr and Mrs. O Ali moved into a ground floor apartment in Oxton in February 1996. The dilemma was if we could estimate the premium would be to prolong the lease by a further 90 years. Comparative homes in Oxton with 100 year plus lease were valued around £220,400. The average ground rent payable was £45 billed yearly. The lease concluded in 2089. Having 64 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £16,200 and £18,600 plus legals.