There is no doubt about it a leasehold flat or house in Oakwood is a wasting asset as a result of the shortening lease. Where the residual term has, beyond one hundred years remaining then this decrease may be negligible that being said there will become a point in time when a lease has under than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should consider extending sooner as opposed to later. Most flat owners in Oakwood will qualify for this right; that being said a conveyancing solicitor can confirm whether you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally accepted that a property with in excess of 100 years remaining is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 30 years left, the premises will be equivalent in value to 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Engaging our service will provide you better control over the value of your Oakwood leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Felix, started to get near to the eighty-year mark with the lease on his basement apartment in Oakwood. In buying his home two decades ago, the length of the lease was of little relevance. Thankfully, he became aware that he would imminently be paying way over the odds for Extending the lease. Felix arranged for a lease extension just ahead of time in September. Felix and the landlord who owned the flat above eventually agreed on sum of £5,500 . If the lease had gone lower than 80 years, the price would have gone up by a minimum £1,025.
In 2010 we were approached by Mr and Mrs. B Brooks who, having moved into a one bedroom apartment in Oakwood in February 2011. We are asked if we could approximate the premium could be for a ninety year extension to my lease. Comparable properties in Oakwood with an extended lease were valued around £181,600. The average ground rent payable was £55 billed quarterly. The lease expired in 2078. Taking into account 52 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus legals.
Mr and Mrs. E Martínez was assigned a lease of a studio flat in Oakwood in March 1997. The question was if we could estimate the compensation to the landlord could be to prolong the lease by ninety years. Similar properties in Oakwood with 100 year plus lease were valued about £285,000. The mid-range ground rent payable was £45 collected monthly. The lease concluded on 27 October 2098. Having 72 years left we calculated the premium to the landlord to extend the lease to be between £12,400 and £14,200 exclusive of expenses.