As the the remaining lease term of a Woburn residential lease decreases so does its value and therefore the value of your property. If the lease has, more than 100 years to run then this decrease may be fractional that being said there will become a point in time when a lease has fewer than eighty years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should consider extending without delay. Many flat owners in Woburn will qualify for this right; that being said a conveyancing solicitor will be able to advise if you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have owned the property for under two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Woburn,the lease extension lawyers 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 valuers.
Trailing lengthy discussions with the landlord of her purpose-built apartment in Woburn, Holly initiated the lease extension process just as the lease was coming close to the crucial eighty-year deadline. The lease extension was finalised in July 2013. The landlord’s costs were kept to an absolute minimum.
Last Autumn we were approach by Mr and Mrs. P Miller , who bought a purpose-built apartment in Woburn in March 1999. We are asked if we could approximate the premium would be to extend the lease by ninety years. Similar homes in Woburn with 100 year plus lease were valued around £280,000. The average amount of ground rent was £45 invoiced yearly. The lease expired in 2094. Taking into account 70 years left we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.
In 2011 we were e-mailed by Mrs P Rodríguez who, having bought a garden flat in Woburn in August 2006. The question was if we could approximate the price would be to extend the lease by ninety years. Comparative homes in Woburn with an extended lease were in the region of £223,400. The mid-range ground rent payable was £60 billed quarterly. The lease elapsed in 2083. Having 59 years unexpired we calculated the premium to the landlord for the lease extension to be within £27,600 and £31,800 plus costs.