There is no doubt about it a leasehold flat or house in Oakdale is a wasting asset as a result of the shortening lease. Where the lease has, more than 100 years remaining then this decrease may be of little impact however there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main reason why you should extend the lease without delay. Most flat owners in Oakdale will meet the qualifying criteria; nevertheless a conveyancer will be able to confirm if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold properties in Oakdale with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| 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. |
The conveyancers that we work with undertake 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 lawyer we work with provide it.
Following unsuccessful negotiations with the freeholder of her one bedroom apartment in Oakdale, Emily started the lease extension process just as her lease was nearing the all-important 80-year threshold. The legal work was finalised in January 2015. The landlord’s fees were kept to an absolute minimum.
Ms M Gunderson acquired a one bedroom apartment in Oakdale in March 2001. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by an additional years. Similar premises in Oakdale with a long lease were valued about £171,800. The mid-range ground rent payable was £55 billed annually. The lease lapsed in 2075. Taking into account 50 years as a residual term we estimated the compensation to the landlord to extend the lease to be within £33,300 and £38,400 plus legals.
In 2010 we were e-mailed by Mr and Mrs. B Nguyen who, having acquired a purpose-built apartment in Oakdale in April 2003. The question was if we could estimate the price would likely be to extend the lease by ninety years. Identical flats in Oakdale with 100 year plus lease were worth £280,000. The mid-range amount of ground rent was £45 billed yearly. The lease ended in 2095. Considering the 70 years unexpired we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of fees.