As the the remaining lease term of a South Woodford residential lease decreases so does its value and therefore the value of your property. If the residual term has, more than 99 years to run then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main reason why you should consider extending without delay. Many flat owners in South Woodford will meet the qualifying criteria; nevertheless a conveyancer can advise if you qualify to extend your lease. In certain situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is conventional wisdom that a property with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be equivalent in value to a freehold for many years in the future.
| 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in South Woodford,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with South Woodford valuers.
After protracted negotiations with the freeholder of her garden apartment in South Woodford, Zoe commenced the lease extension process just as the lease was nearing the crucial eighty-year threshold. The transaction completed in November 2006. The freeholder’s costs were negotiated to under 550 GBP.
In 2012 we were phoned by Dr Y Phillips who, having took over the lease of a first floor flat in South Woodford in November 1999. The question was if we could approximate the premium would be to prolong the lease by an additional years. Similar flats in South Woodford with a long lease were valued about £215,600. The average ground rent payable was £45 billed quarterly. The lease concluded on 23 November 2088. Given that there were 62 years unexpired we estimated the premium to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of professional charges.
An example of a Lease Extension matter before the tribunal for a South Woodford residence is 135 Maybank Road in January 2013. The Tribunal determined that the price to be paid by the tenants for the grant of a new lease is £10,592 This case affected 1 flat. The number of years remaining on the existing lease(s) was 71.2 years.