Chances are that where you own a flat in Four Oaks you actually own a long leasehold interest over your property
Leasehold residencies in Four Oaks with in excess of 100 years unexpired on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Four Oaks can be a difficult process. We recommend you procure guidance from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Four Oaks lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Hugo owned a 2 bedroom flat in Four Oaks on the market with a lease of a little over 72 years outstanding. Hugo informally approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to an increased rent to £125 annually. No ground rent would be payable on a lease extension were Hugo to exercise his statutory right. Hugo procured expert advice and secured satisfactory deal without going to tribunal and sell the flat.
Ms B Lefebvre owned a newly refurbished apartment in Four Oaks in April 2008. The question was if we could approximate the price would be to prolong the lease by ninety years. Similar homes in Four Oaks with a long lease were valued about £260,200. The mid-range ground rent payable was £65 billed quarterly. The lease termination date was in 2092. Considering the 66 years left we approximated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 exclusive of expenses.
Last February we were contacted by Mr and Mrs. I Martin , who acquired a first floor apartment in Four Oaks in June 1997. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Comparable homes in Four Oaks with an extended lease were valued about £198,800. The mid-range amount of ground rent was £55 billed quarterly. The lease end date was in 2081. Given that there were 55 years outstanding we estimated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of costs.