Oakhill leases on residential properties are gradually losing value. Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term dips under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Oakhill will mostly qualify for a lease extension; however It would be wise to check with a conveyancer to confirm if you qualify. In certain situations you may not qualify. There are prescribed timetables and procedures to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 30 years unexpired, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| 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. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with handle Oakhill 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.
Half a year ago Ali, started to get close to the 80-year threshold with the lease on his purpose- built flat in Oakhill. Having bought his flat two decades ago, the lease term was of no concern. As luck would have it, he recognised he needed to take action soon on Extending the lease. Ali arranged for a lease extension just under the wire last March. Ali and the landlord eventually settled on the final figure of £6,000 . If the lease had slipped lower than 80 years, the premium would have escalated by at least £975.
Mr and Mrs. S Miller owned a basement apartment in Oakhill in June 2004. The question was if we could approximate the price could be for a 90 year extension to my lease. Similar properties in Oakhill with a long lease were valued about £205,000. The mid-range amount of ground rent was £50 collected yearly. The lease elapsed on 8 September 2104. Given that there were 78 years unexpired we calculated the compensation to the freeholder to extend the lease to be within £7,600 and £8,800 not including expenses.
An example of a Freehold Enfranchisement matter before the tribunal for a Oakhill residence is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case related to 2 flats. The unexpired residue of the current lease was 69.26 years.