Oadby leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of owners of residential leasehold property in Oadby enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Oadby you really ought to see if your lease has between seventy and 90 years left. There are good reasons why a Oadby leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with more than 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
Lease extensions in Oadby can be a difficult process. We recommend you get professional help from a conveyancer 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 dealing with Oadby lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Liam was the the leasehold owner of a conversion flat in Oadby on the market with a lease of a little over sixty years left. Liam informally spoke with his landlord being a well known Manchester-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 yearly. No ground rent would be payable on a lease extension were Liam to invoke his statutory right. Liam procured expert advice and was able to make a more informed judgement and handle with the matter and readily saleable.
Mr and Mrs. B Jones moved into a basement flat in Oadby in September 1997. We are asked if we could estimate the premium would likely be for a ninety year extension to my lease. Comparable homes in Oadby with 100 year plus lease were worth £280,000. The average ground rent payable was £45 billed quarterly. The lease came to a finish in 2096. Taking into account 70 years unexpired we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
In 2013 we were called by Mr and Mrs. U White who, having was assigned a lease of a first floor apartment in Oadby in September 2001. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by a further 90 years. Similar residencies in Oadby with an extended lease were in the region of £223,400. The mid-range ground rent payable was £60 collected per annum. The lease ended in 2085. Given that there were 59 years as a residual term we approximated the premium to the landlord for the lease extension to be between £27,600 and £31,800 plus costs.