As the the remaining lease term of a Woburn Sands domestic lease decreases so does its value and therefore the value of your property. Where the residual term has, beyond one hundred years to run then this decrease may be negligible that being said there will become a stage when a lease has under than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should consider extending without delay. Many flat owners in Woburn Sands will qualify for this right; nevertheless a conveyancing solicitor should be able to advise whether you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Woburn Sands with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| 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. |
| Yorkshire Building Society | 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. |
The conveyancers that we work with procure 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.
Last October Mason, started to get near to the 80-year threshold with the lease on his one bedroom apartment in Woburn Sands. In buying his property two decades ago, the lease term was of minimal interest. As luck would have it, he became aware that he needed to take action soon on a lease extension. Mason extended the lease just in the nick of time in January. Mason and the freeholder via the management company in the end agreed on an amount of £6,000 . If the lease had slid below eighty years, the amount would have gone up by at least £1,075.
Last Christmas we were approach by Mr and Mrs. I Leroy , who moved into a studio apartment in Woburn Sands in September 1997. The question was if we could approximate the price would be to extend the lease by a further 90 years. Comparable flats in Woburn Sands with 100 year plus lease were worth £176,200. The average ground rent payable was £65 collected yearly. The lease lapsed in 2082. Given that there were 56 years remaining we approximated the compensation to the landlord to extend the lease to be within £29,500 and £34,000 not including costs.
Last month we were approach by Dr H Ricardo , who acquired a one bedroom apartment in Woburn Sands in July 2009. We are asked if we could shed any light on how much (roughly) premium would likely be to extend the lease by an additional years. Similar premises in Woburn Sands with an extended lease were in the region of £242,600. The mid-range ground rent payable was £45 collected annually. The lease terminated in 2093. Considering the 67 years unexpired we calculated the premium to the landlord to extend the lease to be within £11,400 and £13,200 plus professional charges.