Oakdale leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Oakdale enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Oakdale you must investigate if your lease has between seventy and 90 years left. There are good reasons why a Oakdale flat owner with a lease having around 80 years remaining should take steps to ensure that a lease extension is effected without delay
Leasehold premises in Oakdale with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
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. |
Chelsea 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. |
Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
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. |
The lawyers that we work with handle Oakdale 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 conveyancer we work with provide it.
Last October Oscar, started to get close to the eighty-year mark with the lease on his studio flat in Oakdale. Having bought his flat two decades ago, the unexpired term was of no relevance. Fortunately, he noticed he needed to take action soon on a lease extension. Oscar was able to extend his lease at the eleventh hour last August. Oscar and the freeholder via the managing agents subsequently agreed on the final figure of £5,000 . If he failed to meet the deadline, the price would have escalated by a minimum £875.
Last Winter we were phoned by Dr I Martinez , who bought a studio apartment in Oakdale in May 1998. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by an additional years. Similar homes in Oakdale with 100 year plus lease were in the region of £205,000. The mid-range amount of ground rent was £50 billed quarterly. The lease elapsed in 2103. Considering the 78 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 exclusive of costs.
In 2010 we were called by Mr Oscar Hill who, having owned a basement flat in Oakdale in April 2004. We are asked if we could approximate the premium could be for a 90 year lease extension. Similar properties in Oakdale with a long lease were in the region of £267,600. The mid-range amount of ground rent was £65 collected monthly. The lease concluded on 28 May 2092. Having 67 years outstanding we approximated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 not including expenses.