Summertown leases on residential properties are gradually losing value. Where your lease has in the region of ninety years unexpired, you should start considering the need for a lease extension. It is important to recognise that it is that it is desirable for the lease extension to take place before the term of the current lease falls lower than eighty years - otherwise a higher amount will be payable. Flat owners in Summertown will usually be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to confirm if you qualify. In certain circumstances you may not be entitled. There are prescribed deadlines and steps to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Irrespective of whether you are a tenant or a freeholder in Summertown,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 Summertown valuers.
After protracted discussions with the landlord of her one bedroom flat in Summertown, Rachael initiated the lease extension process just as the lease was nearing the critical 80-year deadline. The legal work was finalised in March 2013. The landlord’s costs were kept to an absolute minimum.
In 2013 we were phoned by Ms T Green who, having owned a studio flat in Summertown in June 2010. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to prolong the lease by a further 90 years. Comparative residencies in Summertown with 100 year plus lease were worth £189,000. The average ground rent payable was £55 invoiced every twelve months. The lease came to a finish in 2078. Considering the 53 years remaining we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 plus legals.
Last Autumn we were contacted by Mr and Mrs. N Morris , who moved into a one bedroom flat in Summertown in November 1996. The dilemma was if we could estimate the price could be for a ninety year extension to my lease. Comparative flats in Summertown with 100 year plus lease were in the region of £290,000. The mid-range amount of ground rent was £45 collected annually. The lease expired in 2098. Taking into account 73 years left we calculated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 not including legals.