Unfortunately that a Oakdale residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is not fully appreciated in the first few years due to the reduction being disguised by increases in the Oakdale property market.Where your lease has approximately 90 years left, you should start considering a lease extension. If the number of years remaining drops below 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of additional value that a lease extension will add the property The majority of flat owners in Oakdale will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to follow once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally considered that a property with over 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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.
Liam owned a studio apartment in Oakdale on the market with a lease of a little over 72 years remaining. Liam on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms 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. Ordinarily, ground rent would not be payable on a lease extension were Liam to exercise his statutory right. Liam obtained expert legal guidance and was able to make an informed judgement and deal with the matter and sell the property.
Last Christmas we were e-mailed by Mr and Mrs. U García , who moved into a recently refurbished flat in Oakdale in July 2002. We are asked if we could estimate the price would likely be for a 90 year lease extension. Identical premises in Oakdale with 100 year plus lease were valued around £216,000. The average ground rent payable was £60 invoiced per annum. The lease lapsed in 2082. Taking into account 58 years left we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 exclusive of fees.
In 2012 we were contacted by Mrs Aimee Williams who, having completed a basement flat in Oakdale in September 2011. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Comparative residencies in Oakdale with an extended lease were in the region of £200,000. The mid-range amount of ground rent was £50 invoiced annually. The lease ran out in 2102. Given that there were 78 years outstanding we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.