There is no doubt about it a leasehold property in Little Oakley is a wasting asset as a result of the diminishing lease term. If the lease has, over 100 years to run then this decrease may be fractional however there will become a stage when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Most flat owners in Little Oakley will meet the qualifying criteria; that being said a conveyancing solicitor can confirm if you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold premises in Little Oakley with more than one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
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 conveyancer we work with provide it.
Off the back of protracted negotiations with the freeholder of her studio flat in Little Oakley, Amelia initiated the lease extension process as the eighty year deadline was swiftly advancing. The transaction was concluded in November 2012. The landlord’s charges were kept to an absolute minimum.
In 2011 we were e-mailed by Dr I Roberts who, having acquired a first floor apartment in Little Oakley in January 2004. The question was if we could estimate the premium could be to extend the lease by a further 90 years. Comparable premises in Little Oakley with an extended lease were valued around £206,200. The mid-range amount of ground rent was £60 collected annually. The lease finished in 2081. Given that there were 56 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £32,300 and £37,400 plus fees.
Last Winter we were approach by Dr Gemma Bertrand , who owned a ground floor flat in Little Oakley in November 1998. The question was if we could shed any light on how much (roughly) premium would be to extend the lease by an additional years. Similar flats in Little Oakley with 100 year plus lease were worth £300,000. The average amount of ground rent was £50 invoiced every twelve months. The lease lapsed on 9 February 2101. Given that there were 76 years as a residual term we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.