Woodford 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 the lease gets more expensive. The majority of owners of residential leasehold property in Woodford Green enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Woodford Green you would be well advised to check if your lease has between seventy and ninety years remaining. There are good reasons why a Woodford Green flat owner with a lease having around eighty years left should take steps to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Coventry Building Society | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| 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. |
Retaining our service gives you increased control over the value of your Woodford Green leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
16 months ago Leon, started to get near to the 80-year threshold with the lease on his first floor apartment in Woodford Green. Having bought his home two decades ago, the lease term was of no concern. Fortunately, he became aware that he would imminently be paying way over the odds for Extending the lease. Leon arranged for a lease extension at the eleventh hour in March. Leon and the freeholder in the end agreed on an amount of £6,000 . If the lease had dropped lower than eighty years, the amount would have become more costly by at least £1,125.
Mrs Y Díaz moved into a studio apartment in Woodford Green in July 2007. We are asked if we could shed any light on how much (roughly) premium would likely be for a 90 year lease extension. Identical residencies in Woodford Green with 100 year plus lease were in the region of £267,600. The mid-range ground rent payable was £65 invoiced yearly. The lease lapsed on 6 February 2093. Given that there were 67 years remaining we calculated the premium to the landlord to extend the lease to be within £14,300 and £16,400 not including costs.
An example of a Freehold Enfranchisement matter before the tribunal for a Woodford Green property is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case was in relation to 2 flats. The unexpired term was 69.26 years.