Main reasons to commence your Oakwood lease extension

Main reasons to commence your Oakwood lease extension today:

A Oakwood leasehold property depreciates with the years remaining on the lease.

There is no doubt about it a leasehold property in Oakwood is a wasting asset as a result of the shortening lease. If the lease has, in excess of one hundred years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease sooner rather than later. Many flat owners in Oakwood will qualify for this right; however a lawyer should be able to confirm if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have owned the property for less than two years.

An extended lease is almost the same value as a freehold

Leasehold residencies in Oakwood with in excess of 100 years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.

Lenders may not loan monies with a short lease

Banks and building societies are making their criteria more stringent and many now want flats to have a minimum of sixty if not seventy years left at the end of the mortgage. As a number of flats in Oakwood were built in the fifties, sixties and seventies as a result many now require lease extensions if they if they are to be mortgageable.

Why use us for your lease extension in Oakwood?

The conveyancers that we work with handle 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.

Oakwood Lease Extension Case Studies:

John, Oakwood, Leeds,

John was the the leasehold proprietor of a 2 bedroom flat in Oakwood on the market with a lease of just over fifty eight years outstanding. John informally contacted his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to an increased rent to £50 yearly. Ordinarily, ground rent would not be due on a lease extension were John to invoke his statutory right. John obtained expert advice and was able to make an informed judgement and deal with the matter and sell the property.

Oakwood case:

In 2013 we were called by Ms Rachael Adams who, having acquired a first floor flat in Oakwood in July 2005. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by a further 90 years. Comparative premises in Oakwood with 100 year plus lease were valued about £208,600. The mid-range amount of ground rent was £60 collected quarterly. The lease came to a finish in 2083. Considering the 57 years remaining we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 exclusive of legals.

Oakwood case:

In 2012 we were phoned by Mrs A Stewart who, having took over the lease of a one bedroom apartment in Oakwood in January 2009. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Comparative properties in Oakwood with a long lease were in the region of £200,000. The average amount of ground rent was £50 invoiced every twelve months. The lease finished in 2103. Given that there were 77 years as a residual term we estimated the premium to the landlord to extend the lease to be within £8,600 and £9,800 not including legals.