The market value of Oakwood leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can increase significantly once the unexpired lease term is less than 80 years
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a landlord in Oakwood,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Oakwood valuers.
Following protracted negotiations with the landlord of her studio apartment in Oakwood, Megan started the lease extension process as the 80 year deadline was fast coming. The legal work was concluded in January 2015. The landlord’s charges were negotiated to below 500 pounds.
Mr and Mrs. M Davis completed a one bedroom flat in Oakwood in June 2007. The dilemma was if we could approximate the price could be for a ninety year extension to my lease. Identical properties in Oakwood with a long lease were valued around £267,600. The average ground rent payable was £65 billed every twelve months. The lease expired on 16 September 2092. Given that there were 67 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £14,300 and £16,400 plus costs.
In 2009 we were called by Mr Y Allen who, having owned a garden flat in Oakwood in August 2012. We are asked if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Similar properties in Oakwood with a long lease were valued about £206,200. The mid-range ground rent payable was £55 invoiced per annum. The lease came to a finish on 11 June 2081. Considering the 56 years left we estimated the premium to the landlord to extend the lease to be between £31,400 and £36,200 plus expenses.