With a long leasehold property in Oakley, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may consider extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease becomes disproportionately greater notably when there are less than 80 years left. Anyone in Oakley with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. When a lease has under 80 years left, under the relevant Act the freeholder is entitled to calculate and charge a larger amount, based on a technical computation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Barnsley Building Society | |
| TSB | |
| The Mortgage Works |
Using our service gives you enhanced control over the value of your Oakley leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Omar was the the leasehold owner of a studio apartment in Oakley being marketed with a lease of a little over 61 years outstanding. Omar informally contacted 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 at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Omar to exercise his statutory right. Omar obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
In 2014 we were contacted by Dr Hollie Bertrand who, having owned a ground floor apartment in Oakley in September 2009. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable premises in Oakley with an extended lease were in the region of £189,000. The mid-range ground rent payable was £55 collected per annum. The lease finished on 27 June 2079. Having 53 years remaining we approximated the premium to the landlord for the lease extension to be within £28,500 and £33,000 exclusive of professional charges.
In 2012 we were called by Dr H Rodríguez who, having moved into a ground floor flat in Oakley in August 1997. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar flats in Oakley with an extended lease were worth £290,000. The mid-range ground rent payable was £45 collected quarterly. The lease lapsed on 26 March 2099. Taking into account 73 years as a residual term we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.