South Woodford residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a set term.
Leasehold premises in South Woodford with over 100 years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little upside in buying the freehold unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in South Woodford can be a difficult process. We recommend you get guidance from a lawyer and surveyor with experience in this area.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring South Woodford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Blake, came very near to the 80-year threshold with the lease on his garden flat in South Woodford. Having purchased his property two decades ago, the lease term was of minimal importance. by good luck, he recognised he would soon be paying an inflated amount for Extending the lease. Blake was able to extend his lease just in the nick of time in August. Blake and the landlord who owned the flat above in the end settled on a premium of £5,000 . If he had missed the deadline, the amount would have escalated by at least £1,000.
Last Christmas we were called by Mr and Mrs. A Davies , who purchased a garden flat in South Woodford in November 2012. We are asked if we could approximate the compensation to the landlord could be to extend the lease by a further 90 years. Comparable residencies in South Woodford with an extended lease were in the region of £275,000. The average ground rent payable was £55 collected quarterly. The lease ended in 2102. Given that there were 77 years outstanding we calculated the premium to the landlord to extend the lease to be between £13,300 and £15,400 not including 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 related to 1 flat. The unexpired term was 71.2 years.