Chances are that if you own a flat in Oakdale you actually own a long leasehold interest over your property
Leasehold premises in Oakdale with over 100 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 property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Oakdale 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.
After protracted negotiations with the landlord of her ground floor flat in Oakdale, Tia commenced the lease extension process just as her lease was coming close to the crucial 80-year threshold. The legal work was concluded in April 2015. The freeholder’s costs were kept to an absolute minimum.
Mr E François bought a ground floor flat in Oakdale in April 1997. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year lease extension. Similar premises in Oakdale with 100 year plus lease were worth £275,000. The average amount of ground rent was £65 collected yearly. The lease came to a finish in 2093. Having 68 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.
Ms I Mason purchased a purpose-built flat in Oakdale in November 1998. We are asked if we could estimate the price would be for a ninety year lease extension. Similar homes in Oakdale with 100 year plus lease were valued around £208,600. The mid-range amount of ground rent was £60 collected yearly. The lease elapsed on 3 April 2082. Considering the 57 years as a residual term we approximated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including costs.