Unfortunately that a Four Oaks residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the deflation being disguised by increases in the Four Oaks property prices.Once your lease nears 85ish years, you should start considering a lease extension. If lease term dips below eighty years, you will then be required to pay half 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 Four Oaks will be able to extend under the legislation; however a conveyancer should be able to confirm whether you qualify for an extension. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your lawyer throughout the formalities.
Leasehold residencies in Four Oaks with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations 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. |
| Godiva Mortgages | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 conveyancing solicitors that we work with handle 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 lawyer we work with provide it.
Trailing lengthy correspondence with the landlord of her purpose-built apartment in Four Oaks, Isobel commenced the lease extension process as the eighty year threshold was quickly advancing. The transaction completed in June 2012. The landlord’s fees were negotiated to a tad over 600 GBP.
Mrs Y Rodríguez completed a first floor apartment in Four Oaks in July 1995. The question was if we could estimate the premium could be to prolong the lease by 90 years. Similar flats in Four Oaks with a long lease were valued around £233,200. The mid-range amount of ground rent was £60 invoiced every twelve months. The lease lapsed in 2087. Considering the 61 years unexpired we calculated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 exclusive of legals.
Last Winter we were contacted by Mrs Kelsey Mitchell , who was assigned a lease of a one bedroom apartment in Four Oaks in September 2003. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by ninety years. Identical premises in Four Oaks with a long lease were valued about £166,800. The mid-range ground rent payable was £50 billed per annum. The lease elapsed on 3 May 2076. Given that there were 50 years remaining we calculated the premium to the freeholder to extend the lease to be between £32,300 and £37,400 plus legals.