South Oxhey leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in South Oxhey enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in South Oxhey you must see if your lease has between seventy and 90 years remaining. There are good reasons why a South Oxhey leaseholder with a lease having around 80 years remaining should take steps to make sure that a lease extension is effected without delay
It is generally considered that a property with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in South Oxhey,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with South Oxhey valuers.
Half a year ago Thomas, started to get close to the 80-year mark with the lease on his studio apartment in South Oxhey. Having bought his flat 19 years previously, the lease term was of minimal concern. Fortunately, he noticed he needed to take action soon on Extending the lease. Thomas arranged for a lease extension at the eleventh hour last June. Thomas and the landlord who owned the flat above in the end agreed on a premium of £6,000 . If he had missed the deadline, the sum would have escalated by at least £1,050.
In 2009 we were e-mailed by Mr Y Martin who, having moved into a one bedroom flat in South Oxhey in January 1999. The question was if we could estimate the premium would likely be for a ninety year extension to my lease. Identical flats in South Oxhey with an extended lease were in the region of £210,600. The average amount of ground rent was £45 invoiced every twelve months. The lease terminated on 8 September 2088. Considering the 62 years unexpired we estimated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 not including costs.
An example of a Lease Extension decision for a South Oxhey property is Flats 8, 11 and 15 Craigmore Court 46 Murray Road in December 2013. The tribunal held that the price payable by the Applicant tenant of Flat 8 to acquire an extended lease shall be £26,438 plus £1 to the intermediate lessee . The tribunal held that the price payable by the Applicant tenants of Flat 11 to acquire an extended lease shall be £26,791 plus £1 to the intermediate lessee. The tribunal held that the price payable by the Applicant tenant of Flat 15 to acquire an extended lease shall be £26,638 plus £1 to the intermediate lessee . This case affected 3 flats. The unexpired term as at the valuation date was 71 years.