The re-sale value of a leasehold property in Summertown and Botley is impacted by how long the lease has left to run. If it is near to or fewer than 80 years you should foresee difficulties on re-sale, so it is recommended to arrange for the lease to be extended prior to purchasing. It is ideal to start the process of extending the lease is when the lease still has 82 years remaining so that a lease extension can be concluded well before the 80 year mark. Leasehold Reform legislation entitles Summertown and Botley qualifying lessees to acquire a new lease which will be for the balance of the existing lease plus an additional term of 90 years. The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a residential leasehold with more than one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Summertown and Botley can be a difficult process. We recommend you get professional help from a conveyancing solicitor and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Summertown and Botley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the landlord of her leasehold flat in Summertown and Botley, Tia commenced the lease extension process as the 80 year threshold was quickly advancing. The transaction was finalised in May 2008. The freeholder’s costs were restricted to less than 450 GBP.
Last September we were contacted by Mr Finley Rose , who bought a first floor apartment in Summertown and Botley in August 2001. We are asked if we could approximate the premium could be for a ninety year lease extension. Similar flats in Summertown and Botley with 100 year plus lease were valued around £254,200. The average ground rent payable was £60 billed annually. The lease terminated on 16 February 2076. Having 51 years unexpired we approximated the premium to the landlord to extend the lease to be within £43,700 and £50,600 plus fees.
Last Winter we were called by Mr Thomas Bernard , who purchased a first floor apartment in Summertown and Botley in November 2000. The question was if we could shed any light on how much (roughly) premium could be for a ninety year lease extension. Comparable homes in Summertown and Botley with 100 year plus lease were worth £210,600. The average ground rent payable was £45 billed per annum. The lease end date was in 2087. Given that there were 62 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £18,100 and £20,800 plus costs.