When it comes to domestic leasehold property in Woburn Sands, you are actually buying a right to live in a property for a prescribed time frame. Modern flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are fewer than eighty years left. Leasehold owners in Woburn Sands with a lease approaching 81 years unexpired should seriously consider extending it as soon as possible. When the lease term has below eighty years outstanding, under the current legislation the freeholder is entitled to calculate and levy a larger amount, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold premises in Woburn Sands with over one hundred 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 home. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with undertake 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 conveyancer we work with provide it.
In the wake of eight months of unsuccessful correspondence with the landlord of her one bedroom flat in Woburn Sands, Molly initiated the lease extension process as the eighty year deadline was quickly coming. The transaction was concluded in February 2013. The landlord’s costs were restricted to below 500 GBP.
In 2009 we were contacted by Mr and Mrs. R Lefèvre who, having purchased a newly refurbished flat in Woburn Sands in March 1995. The dilemma was if we could estimate the premium could be to extend the lease by ninety years. Identical premises in Woburn Sands with 100 year plus lease were valued about £256,600. The mid-range amount of ground rent was £60 collected monthly. The lease terminated in 2078. Considering the 52 years left we approximated the premium to the landlord to extend the lease to be between £39,000 and £45,000 exclusive of costs.
Last March we were e-mailed by Mr and Mrs. D Nguyen , who took over the lease of a basement flat in Woburn Sands in November 2004. We are asked if we could approximate the price could be for a 90 year extension to my lease. Comparable flats in Woburn Sands with a long lease were worth £218,000. The average ground rent payable was £45 collected monthly. The lease finished on 4 June 2089. Taking into account 63 years remaining we approximated the premium to the landlord to extend the lease to be within £17,100 and £19,800 exclusive of costs.