The market value of a leasehold property in Woburn Sands is impacted by how many years the lease has remaining. If it is close to or less than eighty years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension ahead of purchasing. It is ideal to start the process of extending the lease is when a lease still has 82 years remaining so that formalities can be finalised in advance of the eighty year mark. Leasehold Reform legislation enables Woburn Sands qualifying lessees to a ninety year extension added to their residual lease term (ie if your lease has 50 years left the statutory lease extension will provide a new term of 140 years). The purpose of the valuation is to arrive at an opinion of the amount payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold residencies in Woburn Sands with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘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 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
The conveyancers that we work with handle Woburn Sands 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.
Evan was the the leasehold proprietor of a studio apartment in Woburn Sands being sold with a lease of a little over sixty years remaining. Evan informally contacted his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Evan to invoke his statutory right. Evan procured expert legal guidance and was able to make an informed decision and handle with the matter and sell the flat.
Mr and Mrs. K André moved into a first floor flat in Woburn Sands in November 2006. We are asked if we could estimate the price could be to extend the lease by 90 years. Comparative properties in Woburn Sands with an extended lease were valued around £265,000. The average amount of ground rent was £50 collected annually. The lease came to a finish in 2099. Having 73 years remaining we estimated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus expenses.
In 2010 we were contacted by Mr and Mrs. N Rose who, having owned a ground floor apartment in Woburn Sands in February 2001. The dilemma was if we could shed any light on how much (approximately) premium would be for a ninety year extension to my lease. Identical residencies in Woburn Sands with 100 year plus lease were in the region of £264,000. The average ground rent payable was £60 invoiced monthly. The lease lapsed in 2079. Considering the 53 years remaining we calculated the premium to the landlord to extend the lease to be within £37,100 and £42,800 exclusive of fees.