There is no doubt about it a leasehold property in Summertown and Botley is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of one hundred years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should consider extending without delay. Most flat owners in Summertown and Botley will meet the qualifying criteria; however a lawyer can advise whether you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Summertown and Botley with more than one hundred years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Summertown and Botley 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.
Last Autumn John, came seriously near to the eighty-year threshold with the lease on his basement flat in Summertown and Botley. Having purchased his home two decades ago, the lease term was of minimal concern. Luckily, he realised he needed to take action soon on Extending the lease. John extended the lease just under the wire in May. John and the freeholder in the end agreed on an amount of £6,000 . If he had missed the deadline, the amount would have escalated by a minimum £1,150.
Last Spring we were contacted by Mr and Mrs. E Allen , who bought a one bedroom apartment in Summertown and Botley in July 1995. The dilemma was if we could estimate the compensation to the landlord could be for a 90 year extension to my lease. Similar residencies in Summertown and Botley with a long lease were valued about £275,000. The average ground rent payable was £55 collected every twelve months. The lease came to a finish in 2103. Taking into account 77 years outstanding we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 plus legals.
Last year we were called by Ms O Martinez , who was assigned a lease of a studio flat in Summertown and Botley in April 2006. We are asked if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical premises in Summertown and Botley with a long lease were valued around £183,600. The mid-range amount of ground rent was £65 invoiced quarterly. The lease expired in 2083. Having 57 years remaining we approximated the premium to the landlord to extend the lease to be within £28,500 and £33,000 not including professional charges.