The nearer a residential lease in Four Oaks nears to zero years unexpired, the the greater the reduction in the value of the property. If the residual term has, more than one hundred years remaining then this decrease may be negligible however there will become a point in time when a lease has under than eighty years remaining 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 primary reason why you should extend the lease without delay. The majority of flat owners in Four Oaks will meet the qualifying criteria; however a conveyancer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold residencies in Four Oaks with more than one hundred years unexpired 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 premises. 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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 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 conveyancer we work with provide it.
Callum owned a conversion apartment in Four Oaks on the market with a lease of fraction over 72 years outstanding. Callum on an informal basis approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Callum to exercise his statutory right. Callum obtained expert advice and was able to make an informed judgement and deal with the matter and sell the property.
In 2011 we were approached by Mr and Mrs. E Wilson who, having took over the lease of a one bedroom apartment in Four Oaks in February 1997. The question was if we could shed any light on how much (roughly) price would likely be for a ninety year extension to my lease. Identical premises in Four Oaks with a long lease were worth £210,000. The average amount of ground rent was £50 invoiced yearly. The lease elapsed in 2106. Taking into account 80 years left we estimated the compensation to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
In 2014 we were approached by Mr and Mrs. J Lefebvre who, having was assigned a lease of a ground floor apartment in Four Oaks in September 2005. The dilemma was if we could approximate the price would likely be for a 90 year extension to my lease. Identical flats in Four Oaks with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £45 billed yearly. The lease came to a finish on 9 May 2095. Having 69 years left we estimated the premium to the landlord for the lease extension to be between £12,400 and £14,200 plus professional charges.