It’s a harsh certainty that a Oakwood residential lease is a deteriorating asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the depreciation being disguised by increases in the Oakwood property prices.Where your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls below 80 years - otherwise a higher amount will be payable. Most leasehold owners in Oakwood will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancer from beginning to end of the process.
It is generally accepted that a property with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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 |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Lease extensions in Oakwood can be a difficult process. We recommend you get guidance from a conveyancer and valuer 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 a wealth of experience dealing with Oakwood lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
18 months ago Zachary, came critically close to the eighty-year threshold with the lease on his purpose- built apartment in Oakwood. Having purchased his home two decades ago, the length of the lease was of no concern. Luckily, he recognised he needed to take steps soon on a lease extension. Zachary extended the lease just ahead of time last March. Zachary and the landlord who owned the flat above in the end settled on sum of £6,000 . If he had missed the deadline, the amount would have gone up by a minimum £925.
Last month we were e-mailed by Dr Harvey Evans , who moved into a one bedroom apartment in Oakwood in September 1995. We are asked if we could approximate the price would likely be for a 90 year extension to my lease. Comparative homes in Oakwood with 100 year plus lease were valued about £285,000. The mid-range ground rent payable was £45 invoiced per annum. The lease came to a finish in 2098. Given that there were 72 years unexpired we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of legals.
In 2012 we were phoned by Mrs R Mitchell who, having purchased a garden apartment in Oakwood in September 2006. The question was if we could approximate the premium would likely be to prolong the lease by ninety years. Similar residencies in Oakwood with a long lease were worth £233,200. The mid-range amount of ground rent was £60 billed yearly. The lease elapsed on 2 May 2087. Considering the 61 years left we approximated the compensation to the landlord to extend the lease to be between £22,800 and £26,400 not including professional charges.