With a domestic leasehold property in Woburn Sands, you are actually purchasing an entitlement to live in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may consider extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive especially when there are fewer than eighty years remaining. Leasehold owners in Woburn Sands with a lease nearing 81 years unexpired should seriously consider extending it without delay. Once a lease has under eighty years remaining, under the relevant Act the landlord is entitled to calculate and levy a larger amount, assessed on a technical computation, strangely termed as “marriage value” which is due.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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. |
Lease extensions in Woburn Sands can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
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 dealing with 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.
Lewis was the the leasehold proprietor of a 2 bedroom apartment in Woburn Sands being marketed with a lease of a little over 59 years outstanding. Lewis informally spoke with his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent to start with set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Lewis to invoke his statutory right. Lewis procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2012 we were approached by Mr and Mrs. T François who, having owned a ground floor flat in Woburn Sands in November 2001. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Comparable flats in Woburn Sands with 100 year plus lease were worth £245,000. The average amount of ground rent was £50 invoiced yearly. The lease ran out on 9 June 2093. Having 68 years left we approximated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
In 2014 we were called by Mrs Tia Patel who, having moved into a one bedroom apartment in Woburn Sands in March 2010. The dilemma was if we could shed any light on how much (approximately) price could be for a ninety year extension to my lease. Identical properties in Woburn Sands with a long lease were worth £285,000. The mid-range ground rent payable was £55 collected quarterly. The lease finished in 2104. Taking into account 79 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £13,300 and £15,400 exclusive of professional charges.