With a long leasehold property in Woburn Sands, you are actually buying an entitlement to reside in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you may consider a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably when there are less than eighty years remaining. Anyone in Woburn Sands with a lease drawing near to 81 years unexpired should seriously think of extending it sooner rather than later. When the lease term has under eighty years outstanding, under the relevant legislation the landlord can calculate and charge a larger premium, based on a technical calculation, known as “marriage value” which is payable.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Barclays plc | |
| Birmingham Midshires | |
| Leeds Building Society | |
| Royal Bank of Scotland |
The lawyers 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 lawyer we work with provide it.
In 2014 Jackson, came dangerously close to the 80-year threshold with the lease on his ground floor flat in Woburn Sands. In buying his flat 18 years ago, the lease term was of no concern. by good luck, he realised he needed to take action soon on Extending the lease. Jackson was able to extend his lease just under the wire last June. Jackson and the landlord eventually agreed on a premium of £5,500 . If he had missed the deadline, the price would have escalated by a minimum £950.
Last Autumn we were called by Mr and Mrs. V Bernard , who acquired a basement apartment in Woburn Sands in November 2011. We are asked if we could approximate the premium would be for a 90 year lease extension. Comparative flats in Woburn Sands with 100 year plus lease were valued about £260,000. The average ground rent payable was £50 collected yearly. The lease came to a finish on 8 November 2098. Considering the 72 years unexpired we approximated the premium to the freeholder to extend the lease to be within £9,500 and £11,000 plus professional charges.
In 2010 we were called by Dr D Hill who, having owned a garden apartment in Woburn Sands in March 1995. We are asked if we could shed any light on how much (approximately) premium could be for a ninety year lease extension. Similar properties in Woburn Sands with an extended lease were worth £256,600. The mid-range ground rent payable was £60 invoiced annually. The lease terminated in 2078. Taking into account 52 years unexpired we approximated the premium to the freeholder to extend the lease to be between £39,000 and £45,000 exclusive of fees.