Chances are that where you own a flat in Oakwood you actually own a long leasehold interest over your property
It is generally considered that a property with over 100 years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Oakwood,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Oakwood valuers.
Aaron owned a high value flat in Oakwood on the market with a lease of fraction over sixty years outstanding. Aaron informally contacted his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £125 per annum. Ordinarily, ground rent would not be due on a lease extension were Aaron to invoke his statutory right. Aaron procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.
In 2013 we were called by Mr and Mrs. H Young who, having was assigned a lease of a studio flat in Oakwood in November 1996. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Comparative residencies in Oakwood with an extended lease were worth £223,400. The average ground rent payable was £60 invoiced quarterly. The lease terminated on 7 November 2084. Taking into account 59 years outstanding we calculated the premium to the freeholder to extend the lease to be within £27,600 and £31,800 plus fees.
In 2009 we were e-mailed by Mrs Y Thompson who, having owned a garden flat in Oakwood in November 2001. We are asked if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical residencies in Oakwood with a long lease were worth £205,000. The average amount of ground rent was £50 billed every twelve months. The lease concluded on 8 October 2104. Considering the 79 years unexpired we estimated the premium to the freeholder for the lease extension to be between £8,600 and £9,800 plus fees.