Oakdale residential property held on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
Irrespective of whether you are a tenant or a freeholder in Oakdale,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Oakdale valuers.
Mason owned a conversion flat in Oakdale on the market with a lease of a little over 72 years remaining. Mason on an informal basis approached his freeholder being a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £100 per annum. No ground rent would be payable on a lease extension were Mason to invoke his statutory right. Mason procured expert advice and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Mr and Mrs. I Collins owned a one bedroom apartment in Oakdale in June 1995. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a 90 year lease extension. Similar residencies in Oakdale with a long lease were in the region of £171,800. The mid-range ground rent payable was £55 billed quarterly. The lease came to a finish in 2076. Having 50 years as a residual term we calculated the compensation to the freeholder for the lease extension to be within £33,300 and £38,400 exclusive of expenses.
Dr H Morel completed a studio apartment in Oakdale in March 2006. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative properties in Oakdale with a long lease were in the region of £280,000. The average amount of ground rent was £45 collected yearly. The lease ran out on 26 February 2096. Considering the 70 years remaining we approximated the premium to the landlord for the lease extension to be between £12,400 and £14,200 not including expenses.