The market value of a leasehold property in Woodley depends on how many years the lease has left to run. If it is near to or fewer than eighty years you should expect difficulties on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to commence the lease extension process when the lease still has 82 years unexpired so that formalities can be finalised in advance of the 80 year cut off point. Current legislation enables Woodley qualifying lessees to an additional term of 90 years in addition to the unexpired term, at a nominal rent (no ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | |
| Barclays plc | |
| Godiva Mortgages | |
| Leeds Building Society | |
| Skipton Building Society |
Engaging our service gives you increased control over the value of your Woodley leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Subsequent to unsuccessful discussions with the landlord of her ground floor apartment in Woodley, Gemma started the lease extension process as the eighty year deadline was fast advancing. The lease extension completed in September 2007. The landlord’s costs were negotiated to slightly above 650 GBP.
Mr and Mrs. D Michel owned a ground floor flat in Woodley in March 2003. We are asked if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Similar residencies in Woodley with a long lease were worth £183,600. The average ground rent payable was £65 collected every twelve months. The lease concluded on 9 January 2083. Given that there were 57 years left we calculated the premium to the freeholder to extend the lease to be between £28,500 and £33,000 not including costs.
In 2013 we were contacted by Dr D Vincent who, having owned a recently refurbished flat in Woodley in July 2006. The dilemma was if we could estimate the price would be for a ninety year lease extension. Comparable homes in Woodley with 100 year plus lease were valued about £245,000. The average amount of ground rent was £50 invoiced annually. The lease expired in 2094. Having 68 years outstanding we estimated the premium to the landlord to extend the lease to be between £9,500 and £11,000 exclusive of fees.