Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Woodford Green. Inevitably, the length of lease left shortens over time. This may slip by relatively unnoticed when the flat or house needs to be disposed of or refinanced. The fewer the years remaining the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible long lease owners in Woodford Green have the right to extend the lease for a further ninety years in accordance with the 1993 Leasehold Reform Act. Please give careful attention before putting off your Woodford Green lease extension. Putting off that expense now simply increases the price you will eventually have to pay to extend your lease
Leasehold residencies in Woodford Green with over 100 years left on the lease are often regarded as a ‘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 buying the freehold unless savings on ground rent and estate charges merit it.
| 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; |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Woodford Green,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Woodford Green valuers.
Following lengthy discussions with the freeholder of her one bedroom flat in Woodford Green, Melissa started the lease extension process as the 80 year threshold was quickly coming. The lease extension completed in July 2009. The freeholder’s costs were kept to an absolute minimum.
Last Christmas we were contacted by Mr and Mrs. T Moreau , who bought a one bedroom flat in Woodford Green in March 1995. The dilemma was if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Identical premises in Woodford Green with an extended lease were in the region of £191,400. The mid-range ground rent payable was £55 billed quarterly. The lease finished in 2080. Given that there were 54 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £34,200 and £39,600 not including legals.
An example of a Freehold Enfranchisement decision 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 lease term was 69.26 years.