The only way is down when it comes to Oakham lease terms. Oakham properties that have a residual term less than than eighty years will reduce in market price at a rapid rate, and the cost to extend your lease will go up.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
The lawyers that we work with procure 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.
Andrew was the the leasehold owner of a conversion apartment in Oakham being sold with a lease of fraction over fifty eight years remaining. Andrew informally approached his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent to start with set at £200 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Andrew to exercise his statutory right. Andrew procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Last month we were phoned by Mr John Cooper , who moved into a first floor flat in Oakham in February 1998. The question was if we could shed any light on how much (roughly) premium would likely be to prolong the lease by ninety years. Identical homes in Oakham with a long lease were worth £225,800. The mid-range amount of ground rent was £60 invoiced annually. The lease termination date was in 2085. Taking into account 60 years remaining we calculated the premium to the landlord to extend the lease to be between £23,800 and £27,400 not including fees.
In 2014 we were approached by Dr I Murphy who, having moved into a one bedroom flat in Oakham in June 2003. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by ninety years. Comparative residencies in Oakham with a long lease were worth £210,000. The mid-range amount of ground rent was £50 invoiced annually. The lease came to a finish on 21 January 2105. Considering the 80 years outstanding we approximated the premium to the landlord for the lease extension to be within £8,600 and £9,800 plus costs.