With a domestic leasehold property in Uxbridge, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Anyone in Uxbridge with a lease drawing near to 81 years unexpired should seriously think of extending it without delay. When the lease term has under 80 years outstanding, under the relevant legislation the freeholder is entitled to calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is due.
It is conventional wisdom that a property with more than 100 years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years remaining, the premises will be worth the same as a freehold for many years in the future.
| 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Uxbridge lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Felix owned a high value apartment in Uxbridge being marketed with a lease of a little over sixty years left. Felix on an informal basis approached his freeholder being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of an increased rent to £100 annually. No ground rent would be due on a lease extension were Felix to exercise his statutory right. Felix obtained expert legal guidance and was able to make a more informed decision and deal with the matter and sell the flat.
Last Winter we were approach by Dr Harriet González , who took over the lease of a first floor apartment in Uxbridge in February 1996. The question was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparative residencies in Uxbridge with 100 year plus lease were in the region of £265,000. The average amount of ground rent was £50 billed per annum. The lease expired on 19 February 2098. Taking into account 73 years as a residual term we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of fees.
An example of a Freehold Enfranchisement decision for a Uxbridge residence is 164 Nestles Avenue in October 2013. The tribunal agreed with the proposed price of £20,158 for the freehold and determined that that sum is the amount to be paid into court This case was in relation to 2 flats. The unexpired lease term was 69 years.