The value of Woburn Sands leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of a lease extension can escalate substantially once the remaining term is less than eighty years
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the property will be equivalent in value to a freehold for many years in the future.
| 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. |
| Chelsea 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
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.
Jayden was the the leasehold proprietor of a conversion apartment in Woburn Sands on the market with a lease of just over fifty eight years unexpired. Jayden informally approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 yearly. Ordinarily, ground rent would not be payable on a lease extension were Jayden to exercise his statutory right. Jayden obtained expert advice and was able to make an informed decision and deal with the matter and ending up with a market value flat.
Mr H Allen was assigned a lease of a basement apartment in Woburn Sands in July 2002. The question was if we could estimate the premium would likely be for a 90 year extension to my lease. Comparable residencies in Woburn Sands with an extended lease were in the region of £210,600. The average amount of ground rent was £45 invoiced yearly. The lease ended on 4 November 2088. Given that there were 62 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 plus expenses.
Last Winter we were contacted by Ms Abbie Green , who took over the lease of a one bedroom flat in Woburn Sands in June 2010. We are asked if we could approximate the price could be to prolong the lease by ninety years. Comparable homes in Woburn Sands with a long lease were worth £265,000. The mid-range amount of ground rent was £50 collected every twelve months. The lease lapsed in 2099. Taking into account 73 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of professional charges.