Oakwood leases on residential properties are gradually losing value. if your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay 50% of the property's 'marriage value' in addition to the standard cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Oakwood will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to check if you qualify. In certain cases you may not qualify. There are prescribed timetables and procedures to follow once the process has commenced so it’s wise to be guided by a lawyer during the process.
It is generally accepted that a residential leasehold with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to 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. |
| Godiva Mortgages | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
Milo was the the leasehold proprietor of a conversion flat in Oakwood being marketed with a lease of fraction over 59 years outstanding. Milo on an informal basis spoke with his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 annually. No ground rent would be payable on a lease extension were Milo to invoke his statutory right. Milo procured expert advice and was able to make an informed decision and deal with the matter and sell the flat.
Mr and Mrs. D Laurent moved into a purpose-built flat in Oakwood in March 2010. The question was if we could approximate the compensation to the landlord could be to extend the lease by 90 years. Identical homes in Oakwood with an extended lease were worth £295,000. The mid-range amount of ground rent was £50 collected annually. The lease expiry date was on 15 February 2101. Given that there were 75 years left we estimated the compensation to the landlord to extend the lease to be within £8,600 and £9,800 exclusive of costs.
Last month we were phoned by Mr and Mrs. E Williams , who purchased a ground floor flat in Oakwood in April 2004. We are asked if we could estimate the compensation to the landlord could be for a ninety year lease extension. Similar homes in Oakwood with an extended lease were in the region of £250,400. The average ground rent payable was £65 billed yearly. The lease concluded in 2090. Considering the 64 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 plus costs.