Unfortunately that a Woburn residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Woburn property market.Where your lease has approximately ninety years left, you should start thinking about a lease extension. If lease term drops below eighty years, you will end up paying half of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add the property The majority of leasehold owners in Woburn will be able to extend under the legislation; however a lawyer should be able to clarify if you are eligibility. In some cases you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is instigated and you will need to be guided by your lawyer from beginning to end of the process.
Leasehold properties in Woburn with more than one hundred years outstanding on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| Halifax | Minimum 70 years from the date 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The lawyers that we work with undertake Woburn 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 conveyancer we work with provide it.
Logan owned a high value apartment in Woburn being marketed with a lease of a few days over fifty eight years left. Logan on an informal basis spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Logan to exercise his statutory right. Logan procured expert advice and secured satisfactory resolution informally and ending up with a market value flat.
Mr and Mrs. A André purchased a one bedroom apartment in Woburn in February 1996. The dilemma was if we could shed any light on how much (roughly) price would be to prolong the lease by 90 years. Identical premises in Woburn with a long lease were valued around £285,000. The mid-range ground rent payable was £45 invoiced yearly. The lease termination date was in 2097. Considering the 71 years unexpired we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus fees.
In 2012 we were approached by Mr and Mrs. G Gunderson who, having owned a garden apartment in Woburn in March 2012. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be to extend the lease by 90 years. Identical homes in Woburn with an extended lease were worth £225,800. The mid-range amount of ground rent was £60 collected monthly. The lease elapsed in 2086. Having 60 years remaining we estimated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 exclusive of expenses.