The nearer a domestic lease in Oakdale nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, in excess of one hundred years remaining then this decrease may be negligible however there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary reason why you should extend the lease without delay. Many flat owners in Oakdale will meet the qualifying criteria; that being said a lawyer can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold properties in Oakdale with in excess of one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Lease extensions in Oakdale can be a difficult process. We recommend you secure professional help from a lawyer 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 Oakdale lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the freeholder of her two bedroom flat in Oakdale, Harriet initiated the lease extension process just as her lease was nearing the crucial 80-year mark. The transaction completed in October 2007. The freeholder’s charges were kept to an absolute minimum.
Mrs Holly Robinson purchased a garden flat in Oakdale in May 2012. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparable residencies in Oakdale with a long lease were worth £285,000. The average amount of ground rent was £45 collected quarterly. The lease ended on 25 September 2097. Taking into account 71 years unexpired we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 plus legals.
Last Autumn we were contacted by Mr and Mrs. V Sánchez , who bought a one bedroom flat in Oakdale in August 2000. We are asked if we could estimate the compensation to the landlord would be for a 90 year extension to my lease. Comparable homes in Oakdale with an extended lease were valued about £225,800. The mid-range ground rent payable was £60 collected per annum. The lease lapsed in 2086. Given that there were 60 years left we calculated the compensation to the freeholder for the lease extension to be within £23,800 and £27,400 plus fees.