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Top reasons for Woodley lease extension


Main reasons to commence your Woodley lease extension today:

Increase your lease and increase your Woodley property value

Unfortunately that a Woodley residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the first few years due to the reduction being disguised by increases in the Woodley property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease falls lower than eighty years - otherwise a higher premium will be due. The majority of flat owners in Woodley will be able to extend under the legislation; however a lawyer will be able to clarify if you are eligibility. In some situations you may not be entitled. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancing solicitor for the duration of the process.

Woodley property with a lease extension has roughly the same value as a freehold

Leasehold properties in Woodley with over 100 years unexpired 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 service charges warrant it.

Mortgage lenders may not lend with a short lease

Mortgage lenders have set criteria when lending monies secured on leasehold property. Many will simply refrain from lending at all once the residual lease term goes lower than a certain unexpired lease term. Many Lending institutions will not regard property with an unexpired term of less than seventy years suitable security. In addition to impacting your ability to sell, it is also relevant if you are intending to remortgage your Woodley property.

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;
Birmingham Midshires 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.
Virgin 85 years at the time of completion. If it's less, we require it to be extended on or before completion.

Why use us for your lease extension in Woodley?

Irrespective of whether you are a tenant or a freeholder in Woodley,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Woodley valuers.

Woodley Lease Extension Case Summaries:

Ben, Woodley, Berkshire,

Ben owned a studio apartment in Woodley being marketed with a lease of a few days over sixty years unexpired. Ben on an informal basis spoke with his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be due on a lease extension were Ben to exercise his statutory right. Ben procured expert advice and was able to make an informed decision and deal with the matter and readily saleable.

Woodley case:

Dr Alicia Anderson purchased a basement apartment in Woodley in August 1999. We are asked if we could estimate the compensation to the landlord would likely be to extend the lease by 90 years. Comparative premises in Woodley with 100 year plus lease were worth £227,800. The average ground rent payable was £45 invoiced quarterly. The lease concluded in 2089. Having 65 years as a residual term we calculated the premium to the landlord for the lease extension to be between £13,300 and £15,400 plus professional charges.

Woodley case:

In 2012 we were called by Mrs Chloe Alexander who, having completed a newly refurbished flat in Woodley in March 1998. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Similar flats in Woodley with a long lease were valued around £270,000. The mid-range ground rent payable was £55 collected per annum. The lease ended in 2100. Taking into account 76 years left we estimated the compensation to the landlord for the lease extension to be between £9,500 and £11,000 exclusive of professional charges.