Woodley leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease becomes more expensive. It is the case that most Woodley tenants have the right to extend their lease by an additional ninety years under the 1993 Leasehold Reform Act. Where you are a leasehold owner in Woodley you would be well advised to check if your lease has between 70 and ninety years left. There are good reasons why a Woodley leaseholder with a lease having around eighty years unexpired should take action to make sure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with over 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| 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. |
The conveyancers that we work with undertake Woodley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
In recent months Jackson, came very near to the 80-year mark with the lease on his one bedroom apartment in Woodley. Having bought his home two decades ago, the length of the lease was of little interest. Fortunately, he became aware that he would soon be paying an escalated premium for Extending the lease. Jackson arranged for a lease extension at the eleventh hour in March. Jackson and the freeholder via the managing agents in the end agreed on a premium of £5,500 . If he had missed the deadline, the figure would have escalated by a minimum £975.
Mr and Mrs. F Peterson was assigned a lease of a one bedroom apartment in Woodley in April 2010. We are asked if we could shed any light on how much (roughly) price could be for a 90 year extension to my lease. Identical premises in Woodley with a long lease were valued about £280,000. The mid-range ground rent payable was £55 invoiced monthly. The lease expired in 2104. Given that there were 78 years as a residual term we calculated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.
Mr and Mrs. J Johnson took over the lease of a newly refurbished flat in Woodley in June 2003. We are asked if we could approximate the compensation to the landlord could be for a 90 year lease extension. Comparable premises in Woodley with 100 year plus lease were in the region of £191,000. The mid-range ground rent payable was £65 billed quarterly. The lease lapsed on 23 April 2084. Given that there were 58 years remaining we estimated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 plus fees.