The market value of a leasehold property in Woburn Sands depends on how long the lease has remaining. If it is close to or less than eighty years you should anticipate problems on re-sale, so it is recommended to arrange for a lease extension ahead of buying. It is preferable to start the lease extension process when the lease still has 82 years remaining so that all matters can be finalised well before the eighty year cut off point. Current legislation entitles Woburn Sands qualifying lessees to obtain a lease extension of ninety years on top of the remaining length of the lease at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the amount payable by the lessee to the freeholder for the acquisition of the lease extension.
Leasehold residencies in Woburn Sands with in excess of 100 years outstanding 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 property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | 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. |
Regardless of whether you are a tenant or a freeholder in Woburn Sands,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 Woburn Sands valuers.
Eliot owned a conversion apartment in Woburn Sands being sold with a lease of a few days over 61 years outstanding. Eliot informally contacted his landlord a well known local-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £200 annually. No ground rent would be due on a lease extension were Eliot to invoke his statutory right. Eliot procured expert advice and secured satisfactory deal informally and sell the flat.
In 2012 we were called by Mrs Holly Fournier who, having bought a ground floor apartment in Woburn Sands in August 2003. The question was if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparative premises in Woburn Sands with an extended lease were in the region of £270,000. The average amount of ground rent was £55 collected every twelve months. The lease lapsed in 2099. Considering the 75 years remaining we calculated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of costs.
Ms F Richardson acquired a ground floor apartment in Woburn Sands in March 1999. We are asked if we could estimate the compensation to the landlord would be for a ninety year lease extension. Comparable properties in Woburn Sands with a long lease were valued about £173,800. The mid-range amount of ground rent was £60 invoiced yearly. The lease ran out on 14 February 2079. Considering the 55 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £31,400 and £36,200 not including legals.