With a long leasehold property in Woburn, you are in fact renting it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease increases markedly especially once there are less than 80 years remaining. Residents in Woburn with a lease approaching 81 years left should seriously consider extending it without delay. Once a lease has under 80 years remaining, under the current Act the freeholder can calculate and levy a greater premium, based on a technical computation, known as “marriage value” which is due.
Leasehold residencies in Woburn with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
The conveyancing solicitors that we work with procure Woburn 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 conveyancing solicitor we work with provide it.
After unsuccessful discussions with the landlord of her ground floor apartment in Woburn, Francesca commenced the lease extension process just as her lease was approaching the crucial 80-year mark. The transaction was finalised in March 2011. The freeholder’s charges were restricted to about 500 GBP.
Mr and Mrs. A Nelson completed a studio apartment in Woburn in October 2009. The question was if we could shed any light on how much (approximately) price could be to prolong the lease by 90 years. Comparative residencies in Woburn with an extended lease were worth £290,000. The average amount of ground rent was £45 invoiced monthly. The lease elapsed on 5 April 2099. Considering the 73 years outstanding we approximated the premium to the landlord to extend the lease to be within £9,500 and £11,000 exclusive of legals.
Dr Blake François bought a purpose-built apartment in Woburn in July 2004. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Identical premises in Woburn with an extended lease were in the region of £240,600. The average ground rent payable was £60 collected monthly. The lease termination date was on 21 September 2088. Having 62 years as a residual term we estimated the premium to the landlord to extend the lease to be within £21,900 and £25,200 plus costs.