The nearer a residential lease in Oakdale gets to zero years unexpired, the the greater the reduction in the value of the property. If the lease has, more than 99 years remaining then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Oakdale will meet the qualifying criteria; however a conveyancer can advise if you are eligible to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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 conveyancing solicitors that we work with handle Oakdale 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.
Following protracted negotiations with the landlord of her first floor flat in Oakdale, Tia initiated the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The legal work completed in June 2009. The landlord’s costs were kept to an absolute minimum.
Last Winter we were called by Mr U Rivera , who moved into a one bedroom flat in Oakdale in September 2008. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Identical properties in Oakdale with 100 year plus lease were in the region of £223,400. The mid-range ground rent payable was £60 billed annually. The lease terminated in 2084. Given that there were 59 years unexpired we calculated the premium to the landlord to extend the lease to be within £27,600 and £31,800 not including professional charges.
Mr and Mrs. A Smith acquired a first floor flat in Oakdale in June 2002. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Similar premises in Oakdale with 100 year plus lease were worth £205,000. The mid-range ground rent payable was £50 collected yearly. The lease elapsed in 2104. Taking into account 79 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 plus fees.