Owning a flat usually means owning a lease of the property, which has a set term of years. This lease will ordinarily be granted for a set period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Summertown. Clearly, the period of lease remaining shortens over time. This is often ignored and only becomes a problem when the residence has to be sold or re-mortgaged. The fewer the years remaining the lower the value of the property and the more it will cost to extend the lease. Qualifying long lease owners in Summertown have the legal entitlement to extend the lease for an additional ninety years under legislation. Do give careful deliberation before putting off your Summertown lease extension. Holding off the cost now only increases the price you will ultimately have to pay to extend your lease
Leasehold properties in Summertown with in excess of one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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 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 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.
Omar owned a conversion flat in Summertown being sold with a lease of just over 61 years remaining. Omar informally approached his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Omar to exercise his statutory right. Omar procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2009 we were contacted by Dr F Taylor who, having was assigned a lease of a newly refurbished flat in Summertown in July 1995. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year extension to my lease. Similar properties in Summertown with 100 year plus lease were valued about £200,000. The average ground rent payable was £50 billed annually. The lease ended in 2102. Considering the 77 years unexpired we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus legals.
Last Autumn we were approach by Mr V Green , who took over the lease of a purpose-built apartment in Summertown in June 2010. The dilemma was if we could shed any light on how much (approximately) price would be for a 90 year lease extension. Comparative premises in Summertown with an extended lease were worth £265,200. The average ground rent payable was £65 invoiced quarterly. The lease elapsed on 10 February 2091. Taking into account 66 years left we calculated the compensation to the freeholder to extend the lease to be between £15,200 and £17,600 plus legals.