Unfortunately that a Summertown residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Summertown property market.Where your lease has approximately ninety years left, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be due. The majority of leasehold owners in Summertown will be able to extend under the legislation; however a conveyancing solicitor should be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to follow once the process is initiated and you will need to be guided by your conveyancer for the duration of the process.
Leasehold residencies in Summertown with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Halifax | |
| Leeds Building Society | |
| National Westminster Bank | |
| Nationwide Building Society | |
| Skipton Building Society |
Engaging our service gives you better control over the value of your Summertown leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Ethan, came dangerously near to the eighty-year threshold with the lease on his two bedroom flat in Summertown. In buying his property 19 years ago, the lease term was of little concern. Thankfully, he became aware that he needed to take action soon on a lease extension. Ethan extended the lease just in the nick of time in January. Ethan and the landlord eventually settled on a premium of £5,000 . If the lease had gone lower than eighty years, the premium would have increased by at least £1,000.
Mr Hugo Adams acquired a one bedroom flat in Summertown in September 2004. We are asked if we could shed any light on how much (approximately) premium would be to prolong the lease by 90 years. Identical flats in Summertown with 100 year plus lease were worth £206,200. The mid-range ground rent payable was £60 collected yearly. The lease ran out on 24 May 2082. Having 56 years remaining we calculated the premium to the landlord to extend the lease to be within £31,400 and £36,200 not including professional charges.
Mr and Mrs. C Roberts took over the lease of a basement flat in Summertown in February 1998. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical properties in Summertown with a long lease were worth £200,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease ran out in 2103. Given that there were 77 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.