Woolwich leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Flat owners in Woolwich will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancer to check if you qualify. In some cases you may not be entitled. There are also strict deadlines and steps to comply with once the process is triggered so it’s best to be guided by a lawyer during the process.
It is generally considered that a property with more than 100 years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you better control over the value of your Woolwich leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Finn was the the leasehold proprietor of a high value flat in Woolwich being marketed with a lease of fraction over sixty years outstanding. Finn informally spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Finn to exercise his statutory right. Finn procured expert advice and secured an acceptable resolution informally and sell the property.
In 2010 we were called by Ms Robyn Patel who, having took over the lease of a first floor apartment in Woolwich in February 1998. We are asked if we could estimate the compensation to the landlord could be to prolong the lease by an additional years. Similar properties in Woolwich with a long lease were in the region of £181,600. The mid-range amount of ground rent was £55 billed quarterly. The lease end date was in 2076. Considering the 52 years remaining we approximated the compensation to the landlord to extend the lease to be between £30,400 and £35,200 plus professional charges.
An example of a Lease Extension case for a Woolwich premises is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case related to 1 flat. The remaining number of years on the lease was 69.77 years.