As the length of the unexpired term of a Oakwood domestic lease decreases so does its value and therefore the value of your property. Where the lease has, over one hundred years remaining then this decrease may be fractional that being said there will become a point in time when a lease has under than 80 years left as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main logic behind why you should extend the lease sooner rather than later. Most flat owners in Oakwood will qualify for this right; however a lawyer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | |
| Chelsea Building Society | |
| Halifax | |
| The Mortgage Works | |
| Royal Bank of Scotland |
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 lawyer we work with provide it.
In 2014 Kian, started to get close to the eighty-year mark with the lease on his one bedroom flat in Oakwood. In buying his property 19 years ago, the unexpired term was of little relevance. by good luck, it dawned on him that he would soon be paying an escalated premium for a lease extension. Kian arranged for a lease extension just under the wire in January. Kian and the landlord who owned the flat above ultimately settled on an amount of £5,000 . If the lease had dipped lower than eighty years, the sum would have gone up by at least £875.
Last year we were phoned by Mr and Mrs. F Murphy , who bought a recently refurbished flat in Oakwood in September 1997. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Identical flats in Oakwood with a long lease were valued about £233,200. The average ground rent payable was £60 billed per annum. The lease concluded on 5 June 2087. Given that there were 61 years remaining we estimated the compensation to the landlord to extend the lease to be within £22,800 and £26,400 plus legals.
In 2010 we were approached by Mr and Mrs. M Sharif who, having was assigned a lease of a recently refurbished flat in Oakwood in August 1996. We are asked if we could estimate the price would likely be to extend the lease by a further 90 years. Comparable premises in Oakwood with an extended lease were valued around £166,800. The average ground rent payable was £55 invoiced yearly. The lease came to a finish on 9 February 2076. Considering the 50 years outstanding we approximated the compensation to the landlord for the lease extension to be between £32,300 and £37,400 not including legals.