The nearer a domestic lease in Oakwood gets to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of 100 years remaining then this decrease may be negligible however there will become a stage when a lease has less than 80 years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Many flat owners in Oakwood will meet the qualifying criteria; however a conveyancing solicitor can confirm if you qualify to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold residencies in Oakwood with over 100 years outstanding on the lease are sometimes regarded as a ‘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 to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake Oakwood 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 Alexander, came very near to the eighty-year mark with the lease on his first floor apartment in Oakwood. In buying his home two decades ago, the length of the lease was of no bearing. Fortunately, he noticed he would soon be paying way over the odds for a lease extension. Alexander arranged for a lease extension just in the nick of time in July. Alexander and the landlord eventually settled on a premium of £5,000 . If the lease had dipped lower than 80 years, the sum would have gone up by at least £1,000.
Dr F Petit moved into a garden flat in Oakwood in June 2010. The question was if we could estimate the premium could be for a ninety year lease extension. Comparable properties in Oakwood with a long lease were valued about £235,600. The average amount of ground rent was £60 collected quarterly. The lease came to a finish in 2086. Having 62 years outstanding we calculated the premium to the landlord to extend the lease to be within £21,900 and £25,200 not including costs.
In 2009 we were approached by Ms Catherine Michel who, having owned a basement flat in Oakwood in June 1997. We are asked if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Identical homes in Oakwood with a long lease were valued about £174,200. The mid-range ground rent payable was £55 collected quarterly. The lease lapsed in 2075. Given that there were 51 years outstanding we calculated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 exclusive of legals.