Wood Green leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Wood Green enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Wood Green you really ought to investigate if your lease has between seventy and ninety years remaining. There are compelling reasons why a Wood Green leaseholder with a lease having around eighty years remaining should take action to make sure that a lease extension is put in place without delay
Leasehold properties in Wood Green with more than 100 years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
The conveyancers that we work with undertake Wood Green 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.
Ben was the the leasehold proprietor of a 2 bedroom flat in Wood Green being sold with a lease of a little over 61 years unexpired. Ben on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to an increased rent to £50 per annum. Ordinarily, ground rent would not be payable on a lease extension were Ben to exercise his statutory right. Ben procured expert advice and was able to make an informed judgement and deal with the matter and readily saleable.
In 2010 we were phoned by Mr and Mrs. N Phillips who, having was assigned a lease of a garden flat in Wood Green in May 2011. The question was if we could approximate the price would likely be for a ninety year lease extension. Comparable homes in Wood Green with 100 year plus lease were valued about £246,800. The average ground rent payable was £60 billed annually. The lease terminated on 2 May 2076. Taking into account 50 years remaining we approximated the compensation to the freeholder for the lease extension to be between £44,700 and £51,600 plus costs.
An example of a Lease Extension decision for a Wood Green premises is First Floor Flat 109 Lyndhurst Road in May 2010. Following a vesting order by Edmonton County Court on 29th October 2009 the Tribunal decided on a figure of £5,012 for a lease extension. This case was in relation to 1 flat. The remaining number of years on the lease was 81.79 years.