With a long leasehold property in Oakwood, you are actually buying a right to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are fewer than eighty years left. Leasehold owners in Oakwood with a lease drawing near to 81 years remaining should seriously consider extending it sooner rather than later. When a lease has fewer than 80 years left, under the current legislation the landlord is entitled to calculate and charge a larger amount, based on a technical computation, known as “marriage value” which is due.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Oakwood can be a difficult process. We recommend you get guidance from a lawyer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Oakwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Twenty four months ago Kai, started to get close to the 80-year mark with the lease on his ground floor apartment in Oakwood. In buying his flat twenty years ago, the unexpired term was of no bearing. Fortunately, he realised he needed to take action soon on Extending the lease. Kai extended the lease at the eleventh hour last September. Kai and the freeholder via the management company subsequently settled on a premium of £5,500 . If he had missed the deadline, the premium would have increased by a minimum £1,150.
In 2011 we were e-mailed by Dr Eleanor Howard who, having completed a garden flat in Oakwood in July 2008. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Identical flats in Oakwood with an extended lease were valued around £243,000. The average amount of ground rent was £65 collected monthly. The lease terminated on 15 September 2088. Having 63 years unexpired we calculated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 plus legals.
Last Summer we were e-mailed by Mr V Gray , who moved into a garden apartment in Oakwood in May 2006. The dilemma was if we could estimate the premium would be for a ninety year lease extension. Comparable flats in Oakwood with 100 year plus lease were valued around £181,600. The mid-range amount of ground rent was £55 collected quarterly. The lease elapsed in 2077. Given that there were 52 years as a residual term we estimated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including costs.