Why you should commence your Oakley lease extension

Why you should start your Oakley lease extension today:

A Oakley leasehold property depreciates with the years remaining on the lease.

The market value of Oakley leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate substantially once the remaining term is less than eighty years

An extended lease is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.

Banks and Building Societies may decide not to loan monies on a short lease

The trend since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the property over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by banks has increased. Historically lenders would lend on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for longer and longer leases - many now have a minimum term of 75 years as a prerequisite.

What makes us experts in Oakley lease extensions?

Regardless of whether you are a tenant or a freeholder in Oakley,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Oakley valuers.

Oakley Lease Extension Example Cases:

Alice, Oakley, Hampshire,

Following lengthy negotiations with the landlord of her first floor apartment in Oakley, Alice initiated the lease extension process as the eighty year mark was fast nearing. The lease extension was concluded in September 2011. The freeholder’s costs were restricted to a tad over 600 GBP.

Oakley case:

Last Spring we were contacted by Mrs V Morgan , who bought a basement flat in Oakley in April 1997. The dilemma was if we could shed any light on how much (roughly) price could be to extend the lease by ninety years. Comparable properties in Oakley with an extended lease were valued around £210,000. The mid-range ground rent payable was £50 invoiced yearly. The lease elapsed in 2106. Given that there were 80 years as a residual term we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.

Oakley case:

Last September we were phoned by Mr and Mrs. Y Cox , who moved into a one bedroom apartment in Oakley in March 2010. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Comparative properties in Oakley with an extended lease were in the region of £275,000. The average ground rent payable was £45 collected every twelve months. The lease elapsed on 13 September 2095. Considering the 69 years left we estimated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.