Top reasons for Four Oaks lease extension

Main reasons to commence your Four Oaks lease extension today:

A Four Oaks lease depreciates with the years remaining on the lease.

On the balance of probabilities where you own a flat in Four Oaks you actually own a long leasehold interest over your property

Four Oaks property with a lease extension is almost the same value as a freehold

Leasehold residencies in Four Oaks with over one hundred years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth 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 estate charges warrant it.

Lending institutions will not loan monies with a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending criteria across the board - this has extended to the property over which the mortgage is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. Historically banks were content with 25 years plus the term of the loan - typically fifty year leases but those requirements evolved by the requirement for longer and longer leases - many use a minimum term of 75 years as standard.

Get in touch with one of our Four Oaks lease extension solicitors or enfranchisement solicitors

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.

Four Oaks Lease Extension Example Cases:

Jackson, Four Oaks, Birmingham

In recent months Jackson, came critically near to the eighty-year mark with the lease on his studio flat in Four Oaks. In buying his home twenty years ago, the length of the lease was of no concern. As luck would have it, he recognised he would soon be paying an escalated premium for a lease extension. Jackson was able to extend his lease just under the wire in June. Jackson and the landlord eventually agreed on the final figure of £5,500 . If the lease had dropped below 80 years, the price would have become more exhorbitant by at least £900.

Four Oaks case:

Last Summer we were e-mailed by Mrs Emma Rogers , who moved into a recently refurbished apartment in Four Oaks in February 2002. The dilemma was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable flats in Four Oaks with 100 year plus lease were valued about £290,000. The mid-range ground rent payable was £45 collected annually. The lease elapsed on 15 June 2099. Having 73 years unexpired we estimated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of expenses.

Four Oaks case:

Last Winter we were called by Dr Isobel García , who acquired a one bedroom flat in Four Oaks in June 2001. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by 90 years. Comparable homes in Four Oaks with a long lease were worth £235,600. The average amount of ground rent was £60 billed annually. The lease terminated in 2088. Taking into account 62 years remaining we calculated the compensation to the landlord for the lease extension to be within £21,900 and £25,200 plus legals.