As the length of the unexpired term of a Oakham domestic lease lessens so does its value and therefore the value of your property. Where the lease has, in excess of 100 years remaining then this decrease may be of little impact however there will become a point in time when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary rational as to why you should consider extending sooner than later. The majority of flat owners in Oakham will meet the qualifying criteria; that being said a conveyancing solicitor will be able to confirm if you qualify 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.
Leasehold premises in Oakham with over 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 situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake Oakham 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.
Jamie owned a studio flat in Oakham being marketed with a lease of fraction over fifty eight years unexpired. Jamie on an informal basis spoke with his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. No ground rent would be payable on a lease extension were Jamie to invoke his statutory right. Jamie obtained expert advice and secured satisfactory resolution informally and readily saleable.
Last month we were e-mailed by Mr and Mrs. H Lee , who owned a basement apartment in Oakham in February 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by ninety years. Similar properties in Oakham with a long lease were in the region of £200,000. The mid-range ground rent payable was £50 collected per annum. The lease concluded on 11 March 2103. Having 77 years unexpired we calculated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.
Mrs Alisha Anderson owned a basement flat in Oakham in June 2012. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Similar properties in Oakham with a long lease were in the region of £260,200. The average amount of ground rent was £65 invoiced monthly. The lease came to a finish on 24 November 2092. Considering the 66 years left we estimated the compensation to the landlord to extend the lease to be between £16,200 and £18,600 not including legals.