Owning a flat usually means owning a lease of the property, which has a set term of years. your lease will ordinarily be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Oakwood. Clearly, the term of lease remaining reduces over time. This may slip by relatively unnoticed when the residence has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension. Eligible long lease owners in Oakwood have the legal entitlement to extend the lease for a further 90 years in accordance with Leasehold Reform legislation. You should give careful attention before putting off your Oakwood lease extension. Putting off the cost now only increases the price you will ultimately incur for a lease extension
It is generally accepted that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The conveyancers that we work with undertake 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 conveyancer we work with provide it.
Joshua was the the leasehold proprietor of a conversion flat in Oakwood being sold with a lease of a little over sixty years left. Joshua informally approached his landlord a well known local-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £50 yearly. No ground rent would be payable on a lease extension were Joshua to exercise his statutory right. Joshua obtained expert advice and secured satisfactory resolution informally and sell the property.
Dr Y Torres was assigned a lease of a purpose-built flat in Oakwood in May 2011. The question was if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Similar flats in Oakwood with 100 year plus lease were in the region of £184,000. The mid-range ground rent payable was £55 billed monthly. The lease came to a finish on 11 November 2079. Given that there were 53 years unexpired we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 not including expenses.
Last May we were approach by Dr Tia Young , who took over the lease of a one bedroom apartment in Oakwood in October 2004. We are asked if we could approximate the premium could be to extend the lease by an additional years. Comparable properties in Oakwood with 100 year plus lease were worth £290,000. The mid-range ground rent payable was £45 billed every twelve months. The lease expired in 2099. Considering the 73 years remaining we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 not including fees.