As the the remaining lease term of a Four Oaks domestic lease diminished so does its value and therefore the value of your property. Where the residual term has, more than one hundred years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should consider extending without delay. Many flat owners in Four Oaks will meet the qualifying criteria; nevertheless a lawyer can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Four Oaks with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit 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. |
| 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. |
| Halifax | 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 |
| 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 Four Oaks 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.
Trailing lengthy negotiations with the freeholder of her garden flat in Four Oaks, Anna commenced the lease extension process as the eighty year mark was quickly approaching. The transaction was finalised in August 2006. The landlord’s fees were kept to an absolute minimum.
Last year we were contacted by Dr T Edwards , who completed a first floor flat in Four Oaks in October 2002. 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. Comparative premises in Four Oaks with 100 year plus lease were valued around £270,000. The average ground rent payable was £65 collected monthly. The lease lapsed on 8 August 2094. Having 68 years outstanding we calculated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus fees.
In 2012 we were approached by Ms Grace Bernard who, having completed a purpose-built flat in Four Oaks in June 2007. The question was if we could approximate the compensation to the landlord could be for a 90 year extension to my lease. Identical flats in Four Oaks with an extended lease were in the region of £208,600. The mid-range amount of ground rent was £60 billed quarterly. The lease ran out on 6 March 2083. Considering the 57 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £30,400 and £35,200 plus professional charges.