With a long leasehold premises in Old Woking, you are actually buying an entitlement to live in a property for a set period of time. These days flat leases typically tend to be for 99 years or 125. Even though this may appear like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the number of years is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Leasehold owners in Old Woking with a lease drawing near to 81 years remaining should seriously think of extending it sooner than later. When a lease has under 80 years remaining, under the relevant legislation the freeholder can calculate and levy a larger premium, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold residencies in Old Woking with over one hundred years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
The lawyers that we work with handle 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.
In 2014 Matthew, came dangerously close to the eighty-year mark with the lease on his one bedroom flat in Old Woking. In buying his home two decades ago, the lease term was of minimal importance. by good luck, he became aware that he needed to take steps soon on a lease extension. Matthew was able to extend his lease at the eleventh hour in August. Matthew and the freeholder via the management company eventually agreed on sum of £5,000 . If the lease had slipped lower than 80 years, the figure would have escalated by at least £1,150.
Last Winter we were called by Ms H Moreau , who owned a first floor flat in Old Woking in July 2012. We are asked if we could shed any light on how much (roughly) premium would be for a 90 year extension to my lease. Comparable premises in Old Woking with a long lease were in the region of £225,800. The average ground rent payable was £60 billed monthly. The lease end date was in 2086. Considering the 60 years outstanding we approximated the premium to the landlord for the lease extension to be within £25,700 and £29,600 exclusive of fees.
Mr and Mrs. E Adams acquired a garden apartment in Old Woking in November 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to prolong the lease by ninety years. Similar premises in Old Woking with 100 year plus lease were worth £210,000. The average ground rent payable was £50 collected annually. The lease finished in 2106. Having 80 years remaining we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including fees.