When it comes to long leasehold property in Oakham, you are actually buying a right to reside in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are less than eighty years left. Leasehold owners in Oakham with a lease nearing 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has below eighty years outstanding, under the relevant legislation the freeholder is entitled to calculate and demand a greater premium, based on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a landlord in Oakham,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Oakham valuers.
George owned a high value flat in Oakham on the market with a lease of just over 59 years unexpired. George informally approached his freeholder being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £200 annually. No ground rent would be due on a lease extension were George to invoke his statutory right. George obtained expert legal guidance and secured satisfactory deal informally and readily saleable.
Mrs S Stewart was assigned a lease of a recently refurbished apartment in Oakham in September 2008. The question was if we could estimate the compensation to the landlord would be to prolong the lease by ninety years. Comparable premises in Oakham with 100 year plus lease were worth £205,000. The average ground rent payable was £50 billed yearly. The lease came to a finish on 20 April 2104. Taking into account 79 years outstanding we approximated the premium to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of professional charges.
In 2010 we were e-mailed by Mr A King who, having owned a garden flat in Oakham in September 2005. The question was if we could estimate the premium would likely be to prolong the lease by a further 90 years. Comparable properties in Oakham with an extended lease were valued around £275,000. The mid-range ground rent payable was £65 collected yearly. The lease elapsed on 26 June 2093. Considering the 68 years as a residual term we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of legals.