Main reasons to commence your Oakwood lease extension

Top reasons for lease extension now:

Increase your lease and increase your Oakwood property value

The basic rule is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Oakwood have the right to extend the lease for a further ninety years in accordance with Leasehold Reform legislation. Do give careful consideration before delaying your Oakwood lease extension. Shelving that expense now simply increases the premium you will eventually have to pay to extend the lease.

Oakwood property with a lease extension has roughly the same value as a freehold

It is generally accepted that a residential leasehold with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years remaining, the residence will be equivalent in value to a freehold for many years ahead.

Banks and Building Societies may not issue a mortgage with a short lease

The propensity since over the last decade has been for mortgage companies to tighten lending requirements generally - this has extended to the types of security over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by lenders has increased. In the past lenders would lend on a lease with 25 years plus the term of the loan - typically 50 year leases but those requirements evolved by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

What makes us experts in Oakwood lease extensions?

Engaging our service gives you increased control over the value of your Oakwood leasehold, as your property will be more valuable and marketable in terms of lease length should you decide to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.

Oakwood Lease Extension Case Summaries:

Tommy, Oakwood, Leeds,

Tommy was the the leasehold owner of a conversion flat in Oakwood being sold with a lease of just over 72 years outstanding. Tommy informally spoke with his freeholder a well known London-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Tommy to invoke his statutory right. Tommy obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.

Oakwood case:

In 2010 we were called by Dr Liam Miller who, having purchased a ground floor apartment in Oakwood in November 2001. The question was if we could estimate the price could be for a 90 year lease extension. Similar premises in Oakwood with a long lease were worth £225,800. The average ground rent payable was £60 collected per annum. The lease lapsed on 6 September 2086. Given that there were 60 years left we calculated the compensation to the landlord for the lease extension to be between £23,800 and £27,400 not including fees.

Oakwood case:

In 2012 we were called by Mr B Cox who, having was assigned a lease of a ground floor apartment in Oakwood in August 2008. We are asked if we could estimate the premium would likely be to extend the lease by a further 90 years. Comparable flats in Oakwood with an extended lease were worth £210,000. The mid-range ground rent payable was £50 billed quarterly. The lease expired on 15 July 2106. Considering the 80 years outstanding we calculated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including legals.