For anyone whose Oakley home is held on a long lease, our message is clear – if nothing is done, the property will ultimately revert to the freeholder, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to extend the lease.
It is conventional wisdom that a residential leasehold with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be worth the same as 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Regardless of whether you are a tenant or a landlord in Oakley,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Oakley valuers.
Kyle owned a 2 bedroom flat in Oakley being sold with a lease of a little over fifty eight years remaining. Kyle informally contacted his landlord being a well known London-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 increase every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kyle to invoke his statutory right. Kyle obtained expert advice and secured an acceptable deal without going to tribunal and readily saleable.
In 2011 we were approached by Mr and Mrs. S Wood who, having owned a one bedroom apartment in Oakley in October 1998. The question was if we could estimate the premium would likely be for a 90 year lease extension. Comparable homes in Oakley with an extended lease were in the region of £243,000. The average amount of ground rent was £65 collected annually. The lease expired on 11 April 2089. Having 63 years remaining we calculated the compensation to the freeholder for the lease extension to be between £20,000 and £23,000 not including professional charges.
Dr Edward Díaz bought a first floor apartment in Oakley in November 2000. We are asked if we could estimate the premium would likely be for a 90 year extension to my lease. Similar properties in Oakley with 100 year plus lease were in the region of £181,600. The average ground rent payable was £55 collected per annum. The lease lapsed in 2078. Considering the 52 years remaining we approximated the premium to the landlord for the lease extension to be between £30,400 and £35,200 plus legals.