Old Woking leases on residential properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start paying an additional element called marriage value. Leasehold owners in Old Woking will mostly qualify for a lease extension; however a solicitor will check your eligibility. In certain cases you may not qualify. There are also strict timetables and steps to comply with once the process is triggered so it’s wise to be guided by a lawyer during the process.
It is conventional wisdom that a property with more than one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years unexpired, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Old Woking 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 conveyancing solicitor we work with provide it.
During the course of the last few months Gabriel, came perilously close to the eighty-year threshold with the lease on his first floor apartment in Old Woking. In buying his home twenty years ago, the lease term was of no significance. Luckily, he became aware that he would imminently be paying an inflated amount for Extending the lease. Gabriel was able to extend his lease just ahead of time last April. Gabriel and the freeholder ultimately agreed on the final figure of £5,000 . If he had missed the deadline, the sum would have escalated by a minimum £1,075.
In 2009 we were called by Mr Oscar Lefèvre who, having moved into a basement flat in Old Woking in March 2000. We are asked if we could estimate the premium would be to extend the lease by an additional years. Comparative homes in Old Woking with a long lease were in the region of £205,000. The mid-range amount of ground rent was £50 collected per annum. The lease lapsed on 17 May 2104. Considering the 79 years left we estimated the compensation to the landlord to extend the lease to be within £7,600 and £8,800 not including costs.
In 2012 we were phoned by Mr and Mrs. C Simon who, having moved into a garden flat in Old Woking in May 1995. We are asked if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Comparable premises in Old Woking with an extended lease were valued around £270,000. The mid-range ground rent payable was £65 invoiced monthly. The lease expired in 2093. Taking into account 68 years as a residual term we calculated the premium to the freeholder for the lease extension to be within £12,400 and £14,200 plus costs.