Oakdale leases on residential properties are gradually losing value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin incurring an additional element called marriage value. Flat owners in Oakdale will mostly qualify for a lease extension; however a solicitor will check if you qualify. In some circumstances you may not be entitled. There are also strict deadlines and steps to follow once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Oakdale with over one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barclays plc | |
| Virgin | |
| Yorkshire Building Society |
The conveyancers 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 conveyancing solicitor we work with provide it.
Benjamin owned a 2 bedroom apartment in Oakdale on the market with a lease of a few days over 61 years unexpired. Benjamin on an informal basis approached his freeholder a well known Bristol-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. Ordinarily, ground rent would not be payable on a lease extension were Benjamin to invoke his statutory right. Benjamin procured expert legal guidance and secured satisfactory deal informally and readily saleable.
In 2010 we were called by Mr and Mrs. E Scott who, having moved into a studio flat in Oakdale in November 2008. We are asked if we could estimate the compensation to the landlord could be to extend the lease by a further 90 years. Identical properties in Oakdale with a long lease were worth £275,000. The mid-range ground rent payable was £45 collected yearly. The lease terminated on 25 September 2095. Having 69 years remaining we estimated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of costs.
Mr and Mrs. C Lambert was assigned a lease of a first floor flat in Oakdale in August 2008. The dilemma was if we could estimate the compensation to the landlord would likely be for a ninety year lease extension. Identical properties in Oakdale with a long lease were valued about £216,000. The mid-range amount of ground rent was £60 collected monthly. The lease terminated on 18 March 2084. Having 58 years left we estimated the premium to the landlord for the lease extension to be within £28,500 and £33,000 not including expenses.