Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will usually be granted for a set period of time , usually 99 or 125 years, although we have come across longer and shorter terms in Summertown. Inevitably, the period of lease left reduces as time goes by. This may slip by relatively unnoticed when the property needs to be sold or re-mortgaged. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Summertown have the legal entitlement to extend the lease for a further ninety years in accordance with legislation. Please give careful attention before delaying your Summertown lease extension. Putting off that expense now simply increases the price you will ultimately have to pay for a lease extension
Leasehold properties in Summertown with over one hundred years remaining on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| 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. |
| Yorkshire 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. |
Lease extensions in Summertown can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
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 in-depth market knowledge dealing with Summertown lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of eight months of protracted correspondence with the freeholder of her purpose-built apartment in Summertown, Harriet commenced the lease extension process as the 80 year mark was quickly approaching. The legal work completed in July 2009. The freeholder’s charges were restricted to less than 600 pounds.
In 2013 we were e-mailed by Mr Jonathan Ramírez who, having owned a studio flat in Summertown in April 2008. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Comparable homes in Summertown with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £45 billed monthly. The lease concluded in 2094. Taking into account 68 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £12,400 and £14,200 not including expenses.
Last Spring we were called by Dr Theo Harris , who purchased a basement apartment in Summertown in August 1996. The dilemma was if we could shed any light on how much (roughly) premium would be to prolong the lease by ninety years. Comparable residencies in Summertown with a long lease were in the region of £216,000. The mid-range amount of ground rent was £60 collected yearly. The lease ended on 14 July 2084. Given that there were 58 years outstanding we calculated the compensation to the landlord for the lease extension to be within £28,500 and £33,000 not including expenses.