The market value of a leasehold property in Woburn Sands is impacted by how long the lease has left to run. If it is near to or less than eighty years you should expect difficulties on re-sale, so it is advisable to arrange for the lease to be extended prior to buying. Ideally one should start the process of extending the lease is when a lease still has 82 years to run so that all matters can be addressed ahead of the eighty year mark. Leasehold Reform legislation entitles Woburn Sands qualifying lessees to a ninety year extension added to their unexpired lease term (ie if your lease has 50 years remaining the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold premises in Woburn Sands with in excess of 100 years unexpired 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 circumstances there is often little to be gained by purchasing the freehold unless savings on ground rent and maintenance charges justify 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Coventry Building Society | 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. |
| 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. |
Lease extensions in Woburn Sands can be a difficult process. We recommend you obtain guidance from a conveyancing solicitor and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Woburn Sands lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After unsuccessful correspondence with the freeholder of her leasehold apartment in Woburn Sands, Katie commenced the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The lease extension was concluded in May 2008. The landlord’s charges were negotiated to below 550 GBP.
Last Summer we were phoned by Mr and Mrs. F Anderson , who completed a one bedroom flat in Woburn Sands in November 2011. The question was if we could shed any light on how much (roughly) compensation to the landlord would be for a ninety year lease extension. Comparable premises in Woburn Sands with an extended lease were in the region of £250,000. The average ground rent payable was £50 invoiced every twelve months. The lease lapsed on 17 February 2095. Taking into account 69 years outstanding we approximated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including legals.
In 2012 we were e-mailed by Mr and Mrs. S Ward who, having took over the lease of a one bedroom apartment in Woburn Sands in April 1996. We are asked if we could approximate the premium would likely be to prolong the lease by a further 90 years. Similar premises in Woburn Sands with a long lease were valued about £285,000. The mid-range amount of ground rent was £55 collected every twelve months. The lease came to a finish on 26 June 2106. Taking into account 80 years left we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 exclusive of fees.