Top reasons for Oakwood lease extension

Top reasons for lease extension now:

Increase your lease and increase your Oakwood property value

Oakwood leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Oakwood enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Oakwood you should check if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the compensation to the landlord for any lease extension sharply increases as part of the premium you pay is what is known as a marriage value

An extended lease is almost the same value as a freehold

Leasehold residencies in Oakwood with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and service charges merit it.

Lending institutions will not issue a mortgage with a short lease

The trend since the credit crunch has been for banks to tighten lending requirements across the board - this has extended to the property over which the home loan is to be granted. This has meant the minimum number of years remaining under the lease required by mortgage companies has increased. In the past banks would lend on a lease with 25 years plus the term of the loan - routinely 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many use a minimum term of 75 years as a prerequisite.

Get in touch with one of our Oakwood lease extension solicitors or enfranchisement solicitors

Retaining our service will provide you better control over the value of your Oakwood leasehold, as your property will be more valuable and marketable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.

Oakwood Lease Extension Case Studies:

Jayden, Oakwood, Leeds,

Jayden was the the leasehold proprietor of a studio flat in Oakwood being marketed with a lease of just over fifty eight years remaining. Jayden informally approached his landlord being a well known local-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Jayden to invoke his statutory right. Jayden obtained expert legal guidance and was able to make a more informed decision and deal with the matter and readily saleable.

Oakwood case:

Mr and Mrs. K Cook moved into a one bedroom flat in Oakwood in March 2011. We are asked if we could estimate the compensation to the landlord would be to extend the lease by a further 90 years. Comparable premises in Oakwood with 100 year plus lease were in the region of £290,000. The average amount of ground rent was £45 collected quarterly. The lease ran out in 2099. Having 73 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including professional charges.

Oakwood case:

Ms U Morel moved into a basement apartment in Oakwood in September 2012. We are asked if we could approximate the premium would be to extend the lease by ninety years. Identical residencies in Oakwood with 100 year plus lease were in the region of £240,600. The average ground rent payable was £60 collected yearly. The lease ran out in 2088. Taking into account 62 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £21,900 and £25,200 not including expenses.