Main reasons to commence your Oakham lease extension

Top reasons for lease extension now:

Increase your lease and increase your Oakham property value

The only way is down when it comes to Oakham lease terms. Oakham properties that have a lease term fewer than eighty years will de-escalate in value at a rapid rate, and the cost to extend your lease will rise.

An extended lease is almost the same value as a freehold

Leasehold premises in Oakham with more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.

Lenders may not grant a mortgage on a short lease

Lending institutions have set criteria when lending funds secured on leasehold property. Many will simply not lend at all once an unexpired lease term slips below a specified unexpired lease term. Many Banks and Building Societies will not regard property with a remaining below seventy years suitable security. In addition to impacting your ability to sell, it is also relevant where you are seeking to remortgage your Oakham home.

Get in touch with one of our Oakham lease extension solicitors or enfranchisement solicitors

Retaining our service gives you increased control over the value of your Oakham leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Oakham Lease Extension Case Studies:

Samantha, Oakham, Rutland,

Following lengthy discussions with the landlord of her garden flat in Oakham, Samantha initiated the lease extension process as the eighty year threshold was quickly nearing. The transaction was concluded in April 2010. The landlord’s fees were kept to an absolute minimum.

Oakham case:

Last Summer we were contacted by Mr and Mrs. J Cooper , who purchased a first floor flat in Oakham in June 1997. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparative flats in Oakham with 100 year plus lease were worth £174,200. The average ground rent payable was £55 billed every twelve months. The lease termination date was in 2077. Given that there were 51 years left we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of expenses.

Oakham case:

Mr Dylan García took over the lease of a one bedroom apartment in Oakham in April 2006. The dilemma was if we could approximate the price would be for a ninety year lease extension. Similar premises in Oakham with an extended lease were worth £285,000. The mid-range amount of ground rent was £45 invoiced monthly. The lease came to a finish in 2097. Considering the 71 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 not including fees.