Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have witnessed longer and shorter terms in Four Oaks. Clearly, the period of lease remaining shortens over time. This is often ignored and only raises itself as an issue when the property has to be sold or re-mortgaged. The shorter the lease the less it is worth and the more expensive it will be to extend the lease. Eligible long lease owners in Four Oaks have the right to extend the lease for a further 90 years in accordance with the 1993 Leasehold Reform Act. Do give due attention before delaying your Four Oaks lease extension. Holding off that expense now only increases the price you will eventually incur to extend your lease
Leasehold residencies in Four Oaks with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value 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 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
Lease extensions in Four Oaks can be a difficult process. We recommend you secure professional help from a lawyer and surveyor 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 in-depth market knowledge 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.
In recent months Felix, came very close to the eighty-year mark with the lease on his garden flat in Four Oaks. In buying his home two decades ago, the length of the lease was of little significance. As luck would have it, he became aware that he needed to take steps soon on a lease extension. Felix was able to extend his lease just under the wire last January. Felix and the landlord eventually settled on an amount of £5,000 . If he had missed the deadline, the figure would have escalated by a minimum £950.
In 2011 we were approached by Mrs P James who, having owned a ground floor apartment in Four Oaks in October 2005. We are asked if we could shed any light on how much (approximately) premium would be for a 90 year lease extension. Comparable flats in Four Oaks with an extended lease were in the region of £243,000. The average amount of ground rent was £65 collected annually. The lease ran out in 2088. Having 63 years outstanding we approximated the compensation to the landlord for the lease extension to be between £20,000 and £23,000 not including professional charges.
Last Autumn we were called by Dr Molly Peterson , who completed a one bedroom flat in Four Oaks in January 1995. We are asked if we could shed any light on how much (roughly) price would be to extend the lease by a further 90 years. Similar homes in Four Oaks with an extended lease were worth £181,600. The average amount of ground rent was £55 collected quarterly. The lease concluded on 1 February 2077. Given that there were 52 years remaining we calculated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 not including legals.