Woolacombe leases on domestic properties are gradually losing value. if your lease has about ninety years remaining, you should start thinking about a lease extension. If lease term falls under 80 years, you will then be required to pay 50% of the property's 'marriage value' on top of the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Woolacombe will mostly qualify for a lease extension; however It would be wise to check with a lawyer to confirm if you qualify. In some cases you may not be entitled. There are also strict timetables and steps to comply with once the process has commenced so it’s wise to be guided by a conveyancer during the process.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an additional ninety years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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. |
Retaining our service gives you increased control over the value of your Woolacombe leasehold, as your property will be more valuable and marketable in respect of lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In recent months Henry, came precariously close to the eighty-year mark with the lease on his studio apartment in Woolacombe. In buying his flat two decades ago, the lease term was of no bearing. Thankfully, he became aware that he needed to take steps soon on Extending the lease. Henry extended the lease just ahead of time in January. Henry and the freeholder via the managing agents subsequently agreed on a premium of £5,500 . If he had missed the deadline, the sum would have escalated by a minimum £1,100.
Last April we were contacted by Mr R Clark , who completed a first floor apartment in Woolacombe in November 2011. We are asked if we could approximate the compensation to the landlord could be to prolong the lease by an additional years. Comparative residencies in Woolacombe with a long lease were valued around £210,000. The mid-range ground rent payable was £50 collected every twelve months. The lease concluded in 2105. Given that there were 80 years remaining we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including expenses.
Last Spring we were contacted by Mrs Paige Moreau , who took over the lease of a recently refurbished apartment in Woolacombe in August 1995. The dilemma was if we could approximate the premium would likely be to extend the lease by 90 years. Identical properties in Woolacombe with 100 year plus lease were in the region of £275,000. The average amount of ground rent was £45 collected quarterly. The lease expired on 21 July 2094. Having 69 years outstanding we calculated the premium to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.