The market value of a leasehold property in Oakwood is impacted by how many years the lease has remaining. If it is near to or fewer than eighty years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to commence the process of extending the lease is when a lease still has 82 years to run so that all matters can be concluded prior to the eighty year threshold. Current legislation enables Oakwood qualifying lessees to acquire a new lease which will be for the current unexpired lease term plus a further term of ninety years. The reason of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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. |
Using our service will provide you enhanced control over the value of your Oakwood leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Samuel was the the leasehold owner of a 2 bedroom flat in Oakwood on the market with a lease of a few days over sixty years unexpired. Samuel informally spoke with his landlord a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a rise in the rent to £50 per annum. Ordinarily, ground rent would not be due on a lease extension were Samuel to exercise his statutory right. Samuel obtained expert legal guidance and was able to make an informed decision and handle with the matter and readily saleable.
Ms Amelia Phillips took over the lease of a recently refurbished flat in Oakwood in August 2002. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year extension to my lease. Comparable residencies in Oakwood with an extended lease were in the region of £275,000. The mid-range ground rent payable was £65 collected annually. The lease concluded on 25 May 2094. Having 68 years unexpired we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus fees.
In 2014 we were phoned by Mr D Torres who, having purchased a purpose-built flat in Oakwood in January 2000. We are asked if we could shed any light on how much (approximately) price would be for a ninety year extension to my lease. Identical flats in Oakwood with a long lease were valued around £208,600. The mid-range ground rent payable was £60 collected annually. The lease ran out in 2083. Taking into account 57 years remaining we approximated the compensation to the freeholder for the lease extension to be within £30,400 and £35,200 plus expenses.