South Woodford leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying South Woodford residential leaseholders to extend the terms of long leases. Where you are a leasehold owner in South Woodford you should check if your lease has between seventy and ninety years left. There are good reasons why a South Woodford leaseholder with a lease having around eighty years unexpired should take steps to make sure that a lease extension is actioned without delay
Leasehold properties in South Woodford with in excess of one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The lawyers that we work with undertake South Woodford 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 conveyancing solicitor we work with provide it.
Two years ago Jake, came dangerously near to the 80-year mark with the lease on his first floor apartment in South Woodford. Having purchased his flat 19 years previously, the unexpired term was of minimal interest. Fortunately, he noticed he would imminently be paying an escalated premium for a lease extension. Jake was able to extend his lease just under the wire in September. Jake and the freeholder ultimately settled on an amount of £5,500 . If the lease had fallen lower than 80 years, the figure would have increased by a minimum £900.
In 2014 we were approached by Mr and Mrs. G Sharif who, having was assigned a lease of a recently refurbished apartment in South Woodford in April 2001. The dilemma was if we could shed any light on how much (approximately) price would likely be to extend the lease by 90 years. Similar residencies in South Woodford with an extended lease were worth £285,000. The average ground rent payable was £55 billed every twelve months. The lease lapsed in 2105. Considering the 80 years left we calculated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
An example of a Lease Extension case for a South Woodford flat 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 related to 1 flat. The unexpired lease term was 71.2 years.