Woburn Sands leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease becomes more expensive. Legislation has been in place for sometime now allowing qualifying Woburn Sands residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Woburn Sands you must check if your lease has between seventy and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
It is generally accepted that a residential leasehold with more than one hundred years remaining is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a freeholder in Woburn Sands,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Woburn Sands valuers.
Half a year ago Freddie, started to get close to the eighty-year mark with the lease on his garden flat in Woburn Sands. In buying his home 19 years previously, the length of the lease was of minimal interest. by good luck, it dawned on him that he needed to take steps soon on a lease extension. Freddie extended the lease just ahead of time in April. Freddie and the freeholder in the end settled on an amount of £6,000 . If the lease had slid to less than 80 years, the amount would have become more exhorbitant by a minimum £1,050.
Last month we were called by Dr E Cook , who was assigned a lease of a one bedroom apartment in Woburn Sands in June 2010. We are asked if we could approximate the premium could be to extend the lease by ninety years. Similar flats in Woburn Sands with 100 year plus lease were valued about £256,600. The average ground rent payable was £60 billed quarterly. The lease terminated on 9 January 2077. Considering the 52 years outstanding we approximated the compensation to the landlord to extend the lease to be within £39,000 and £45,000 plus fees.
Last Autumn we were contacted by Mr and Mrs. H Peterson , who moved into a newly refurbished flat in Woburn Sands in February 2007. The question was if we could estimate the compensation to the landlord would be for a ninety year lease extension. Similar residencies in Woburn Sands with a long lease were worth £218,000. The mid-range ground rent payable was £45 collected monthly. The lease came to a finish in 2088. Considering the 63 years remaining we calculated the compensation to the landlord for the lease extension to be within £17,100 and £19,800 not including expenses.