With a long leasehold property in South Woodford, you are in fact renting it for a certain amount of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years left. Anyone in South Woodford with a lease nearing 81 years remaining should seriously consider extending it sooner than later. Once the lease term has below 80 years remaining, under the current statute the freeholder can calculate and charge a greater premium, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in South Woodford with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in South Woodford,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with South Woodford valuers.
Last year Lucas, started to get near to the eighty-year mark with the lease on his first floor flat in South Woodford. In buying his home 19 years ago, the lease term was of little relevance. by good luck, he realised he would soon be paying an inflated amount for Extending the lease. Lucas extended the lease just in the nick of time in August. Lucas and the landlord eventually settled on an amount of £5,000 . If he failed to meet the deadline, the sum would have escalated by a minimum £1,075.
In 2009 we were approached by Mr and Mrs. M James who, having acquired a one bedroom apartment in South Woodford in June 2005. The dilemma was if we could approximate the premium would likely be for a 90 year extension to my lease. Comparative flats in South Woodford with a long lease were in the region of £220,400. The average amount of ground rent was £45 invoiced every twelve months. The lease concluded on 25 January 2090. Taking into account 64 years remaining we estimated the compensation to the landlord to extend the lease to be between £15,200 and £17,600 plus expenses.
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 lease term was 71.2 years.