Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will ordinarily be granted for a prescribed period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Oakwood. Clearly, the length of lease remaining shortens as time goes by. This may slip by relatively unnoticed when the property needs to be sold or refinanced. The shorter the lease the less it is worth and the more it will cost to obtain a lease extension. Qualifying leaseholders in Oakwood have the legal entitlement to extend the lease for an additional ninety years under Leasehold Reform legislation. Do give due deliberation before putting off your Oakwood lease extension. Putting off the cost now simply increases the price you will eventually incur for a lease extension
Leasehold properties in Oakwood with in excess of 100 years remaining on the lease are sometimes regarded as a ‘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 buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Birmingham Midshires | |
| Chelsea Building Society | |
| TSB | |
| Yorkshire Building Society |
Lease extensions in Oakwood can be a difficult process. We recommend you obtain guidance from a conveyancer and valuer with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Oakwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Leo, came critically near to the 80-year mark with the lease on his garden apartment in Oakwood. In buying his flat twenty years ago, the lease term was of no bearing. Fortunately, he noticed he needed to take action soon on a lease extension. Leo was able to extend his lease just under the wire last April. Leo and the landlord who owned the flat above in the end settled on the final figure of £6,000 . If the lease had fallen lower than eighty years, the amount would have become more costly by at least £975.
In 2010 we were called by Dr J Lee who, having purchased a one bedroom apartment in Oakwood in May 1996. We are asked if we could estimate the premium could be for a ninety year extension to my lease. Comparable flats in Oakwood with a long lease were valued around £166,800. The average amount of ground rent was £55 invoiced every twelve months. The lease concluded in 2076. Taking into account 50 years unexpired we calculated the compensation to the landlord to extend the lease to be within £32,300 and £37,400 exclusive of expenses.
In 2011 we were called by Mr and Mrs. J Green who, having completed a basement flat in Oakwood in September 2005. The question was if we could estimate the price would likely be to extend the lease by 90 years. Comparable premises in Oakwood with an extended lease were worth £280,000. The mid-range ground rent payable was £45 collected annually. The lease terminated in 2096. Given that there were 70 years outstanding we calculated the premium to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.