Woodingdean leases on residential properties are gradually losing value. if your lease has in the region of 90 years left, you should start considering the need for a lease extension. 80 years is a significant number: when the unexpired term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Woodingdean will usually be legally entitled to a lease extension; however a solicitor will check your eligibility. In certain situations you may not qualify. There are prescribed timetables and procedures to comply with once the process is triggered so it’s best to be guided by a conveyancer during the process.
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to any lease with more than 45 years remaining, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Engaging our service gives you better control over the value of your Woodingdean leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Last October Elijah, started to get close to the 80-year mark with the lease on his basement flat in Woodingdean. In buying his home 19 years ago, the length of the lease was of little interest. Thankfully, it dawned on him that he would soon be paying an inflated amount for a lease extension. Elijah extended the lease just in the nick of time last June. Elijah and the freeholder via the management company subsequently settled on a premium of £5,000 . If the lease had slid lower than eighty years, the figure would have increased by a minimum £925.
Last Summer we were e-mailed by Mr Leo François , who owned a newly refurbished apartment in Woodingdean in August 2004. We are asked if we could estimate the price would likely be to extend the lease by an additional years. Comparable properties in Woodingdean with a long lease were worth £295,000. The mid-range ground rent payable was £45 billed every twelve months. The lease concluded in 2099. Having 74 years remaining we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 plus legals.
Last year we were phoned by Ms Y Turner , who bought a garden apartment in Woodingdean in February 2005. The dilemma was if we could shed any light on how much (roughly) premium could be for a ninety year extension to my lease. Identical homes in Woodingdean with an extended lease were valued about £248,000. The average ground rent payable was £65 collected annually. The lease came to a finish on 28 August 2088. Considering the 63 years outstanding we calculated the premium to the landlord to extend the lease to be between £20,900 and £24,200 not including legals.