With a residential leasehold premises in Oxton, you are actually buying an entitlement to reside in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater especially once there are fewer than eighty years left. Residents in Oxton with a lease approaching 81 years remaining should seriously consider extending it sooner than later. Once the lease term has fewer than 80 years outstanding, under the relevant legislation the landlord can calculate and charge a greater premium, based on a technical multiplication, strangely termed as “marriage value” which is due.
Leasehold premises in Oxton with over one hundred years remaining on the lease are often 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 to be gained by buying the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a landlord in Oxton,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Oxton valuers.
In 2014 Oliver, came very close to the 80-year mark with the lease on his garden flat in Oxton. In buying his property two decades ago, the unexpired term was of little relevance. Fortunately, he noticed he needed to take steps soon on a lease extension. Oliver arranged for a lease extension at the eleventh hour last September. Oliver and the landlord who owned the flat above eventually agreed on an amount of £5,500 . If he failed to meet the deadline, the price would have escalated by at least £850.
Last year we were phoned by Dr V Dupont , who was assigned a lease of a studio apartment in Oxton in October 2012. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparative properties in Oxton with 100 year plus lease were valued around £235,200. The average amount of ground rent was £45 billed quarterly. The lease lapsed on 15 May 2092. Considering the 66 years left we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.
In 2012 we were approached by Mr and Mrs. Y Ali who, having acquired a first floor apartment in Oxton in March 1997. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Identical premises in Oxton with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £55 invoiced every twelve months. The lease termination date was on 23 July 2103. Given that there were 77 years left we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 plus fees.