When it comes to domestic leasehold property in Oakwood, you are in fact renting it for a certain amount of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly notably once there are fewer than eighty years remaining. Residents in Oakwood with a lease drawing near to 81 years remaining should seriously think of extending it as soon as possible. When a lease has under eighty years outstanding, under the relevant Act the landlord is entitled to calculate and charge a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
The conveyancing solicitors that we work with procure Oakwood lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Off the back of lengthy correspondence with the landlord of her studio apartment in Oakwood, Hollie commenced the lease extension process as the eighty year mark was quickly nearing. The legal work completed in March 2008. The freeholder’s fees were negotiated to a tad over 450 GBP.
In 2013 we were phoned by Dr P Bennett who, having completed a one bedroom apartment in Oakwood in April 2002. We are asked if we could approximate the price would be for a ninety year extension to my lease. Similar flats in Oakwood with 100 year plus lease were worth £260,200. The mid-range amount of ground rent was £65 collected monthly. The lease expired in 2092. Having 66 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £15,200 and £17,600 plus fees.
In 2011 we were contacted by Mr and Mrs. U Martin who, having moved into a ground floor flat in Oakwood in July 2008. The question was if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Similar homes in Oakwood with a long lease were in the region of £198,800. The mid-range amount of ground rent was £55 invoiced annually. The lease end date was in 2081. Considering the 55 years unexpired we approximated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of legals.