On the balance of probabilities if you own a flat in Oxton you actually own a long leasehold interest over your property
It is generally considered that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 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. |
The conveyancing solicitors 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 conveyancer we work with provide it.
Two years ago Harry, came very close to the 80-year threshold with the lease on his first floor apartment in Oxton. Having purchased his flat 19 years previously, the length of the lease was of little significance. Thankfully, he recognised he would imminently be paying an inflated amount for Extending the lease. Harry was able to extend his lease just under the wire in June. Harry and the freeholder via the management company eventually agreed on the final figure of £5,500 . If the lease had descended to less than eighty years, the sum would have become more exhorbitant by at least £975.
Last Christmas we were contacted by Ms P Kelly , who was assigned a lease of a basement flat in Oxton in April 2004. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical flats in Oxton with 100 year plus lease were in the region of £168,800. The average amount of ground rent was £60 collected per annum. The lease ran out on 15 November 2081. Having 55 years remaining we approximated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 exclusive of legals.
Last Christmas we were called by Dr J Evans , who completed a studio flat in Oxton in June 2006. The question was if we could estimate the price would be for a 90 year lease extension. Identical premises in Oxton with a long lease were in the region of £235,200. The average amount of ground rent was £45 collected quarterly. The lease ended in 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 exclusive of legals.