Summertown leases on domestic properties are gradually losing value. Where your lease has about 90 years left, you should start considering the need for a lease extension. An important point to note is that it is financially advisable for the lease extension to be in place before the term of the existing lease falls under 80 years - otherwise a higher premium will be due. Flat owners in Summertown will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check your eligibility. In certain circumstances you may not qualify. There are also strict deadlines and steps to comply with once the process has commenced so it’s prudent to be guided by a lawyer during the process.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| 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 obtain professional help from a conveyancer and valuer 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 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.
Two years ago Archie, came critically close to the 80-year mark with the lease on his two bedroom flat in Summertown. In buying his home 19 years previously, the lease term was of little concern. by good luck, it dawned on him that he would imminently be paying an escalated premium for a lease extension. Archie arranged for a lease extension just under the wire last May. Archie and the landlord subsequently settled on a premium of £5,000 . If he not met the deadline, the amount would have gone up by at least £1,150.
Last Autumn we were e-mailed by Mrs B Lefebvre , who moved into a recently refurbished flat in Summertown in August 2009. We are asked if we could approximate the price could be to prolong the lease by 90 years. Comparative premises in Summertown with 100 year plus lease were valued about £257,800. The mid-range ground rent payable was £65 invoiced every twelve months. The lease concluded on 28 September 2090. Given that there were 65 years as a residual term we calculated the premium to the landlord for the lease extension to be within £18,100 and £20,800 exclusive of fees.
Mrs D Anderson acquired a studio flat in Summertown in July 2012. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative homes in Summertown with 100 year plus lease were worth £196,400. The mid-range ground rent payable was £55 invoiced yearly. The lease expired in 2079. Taking into account 54 years remaining we calculated the premium to the freeholder for the lease extension to be between £34,200 and £39,600 plus professional charges.