There is no doubt about it a leasehold flat or house in Woodbury is a wasting asset as a result of the shortening lease. Where the lease has, over 99 years to run then this decrease may be negligible however there will become a point in time when a lease has under than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Most flat owners in Woodbury will meet the qualifying criteria; however a conveyancing solicitor can confirm whether you qualify to extend your lease. In certain situations you may not qualify, the most common reason being that you have owned the property for under two years.
Leasehold premises in Woodbury with over one hundred 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 property. In such situations there is often little upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| 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. |
Lease extensions in Woodbury can be a difficult process. We recommend you get guidance from a conveyancer and surveyor 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 a wealth of experience dealing with Woodbury lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
After protracted negotiations with the freeholder of her basement apartment in Woodbury, Hollie commenced the lease extension process as the 80 year threshold was rapidly coming. The transaction was finalised in April 2007. The freeholder’s fees were kept to an absolute minimum.
In 2010 we were e-mailed by Mr and Mrs. R González who, having moved into a studio apartment in Woodbury in November 1995. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year lease extension. Comparable homes in Woodbury with 100 year plus lease were valued around £295,000. The average ground rent payable was £45 collected monthly. The lease finished on 21 June 2099. Given that there were 74 years remaining we calculated the premium to the landlord for the lease extension to be within £8,600 and £9,800 not including expenses.
Ms Maisie Gómez purchased a first floor flat in Woodbury in September 1998. The question was if we could approximate the price could be for a 90 year lease extension. Comparative properties in Woodbury with a long lease were worth £243,000. The mid-range ground rent payable was £65 billed quarterly. The lease elapsed in 2088. Having 63 years left we approximated the premium to the freeholder for the lease extension to be within £20,000 and £23,000 not including legals.