The rule of thumb is, all other things holding equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Little Oakley have the right to extend the lease for an additional 90 years in accordance with Leasehold Reform legislation. Do think carefully before delaying your Little Oakley lease extension. Postponing the costs now simply escalates the premium you will ultimately have to pay to extend the lease.
Leasehold properties in Little Oakley with more than 100 years remaining on the lease are often regarded as a ‘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 upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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 conveyancers that we work with handle Little Oakley 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.
In 2014 Luke, started to get close to the eighty-year threshold with the lease on his ground floor apartment in Little Oakley. Having bought his flat 18 years previously, the unexpired term was of little concern. Thankfully, he noticed he needed to take steps soon on Extending the lease. Luke extended the lease just under the wire in January. Luke and the freeholder subsequently agreed on sum of £5,000 . If he had missed the deadline, the amount would have become more exhorbitant by a minimum £950.
Last March we were called by Dr Max Ali , who took over the lease of a first floor flat in Little Oakley in July 1998. The dilemma was if we could estimate the premium would likely be for a 90 year lease extension. Identical residencies in Little Oakley with 100 year plus lease were in the region of £280,000. The mid-range amount of ground rent was £45 invoiced quarterly. The lease finished in 2096. Given that there were 70 years unexpired we approximated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of professional charges.
Dr U Martinez owned a recently refurbished flat in Little Oakley in July 2009. We are asked if we could approximate the price could be to prolong the lease by 90 years. Identical residencies in Little Oakley with an extended lease were in the region of £223,400. The average amount of ground rent was £60 billed monthly. The lease finished in 2085. Taking into account 59 years outstanding we estimated the premium to the landlord to extend the lease to be between £27,600 and £31,800 not including expenses.