There is no doubt about it a leasehold property in Woburn is a wasting asset as a result of the diminishing lease term. If the residual term has, more than 99 years remaining then this decrease may be fractional however there will become a stage when a lease has under than eighty years left as part of the premium you will incur is what is termed as a marriage value. This could increase markedly the cost. It is the primary rational as to why you should consider extending without delay. The majority of flat owners in Woburn will meet the qualifying criteria; that being said a conveyancer can confirm whether you qualify for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Using our service will provide you enhanced control over the value of your Woburn leasehold, as your property will be more valuable and saleable in respect of lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Elijah owned a 2 bedroom apartment in Woburn on the market with a lease of fraction over sixty years left. Elijah on an informal basis spoke with his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Elijah to invoke his statutory right. Elijah procured expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Dr G Miller completed a ground floor apartment in Woburn in October 1997. The question was if we could shed any light on how much (approximately) compensation to the landlord could be for a 90 year extension to my lease. Comparable residencies in Woburn with a long lease were valued around £250,400. The average amount of ground rent was £65 collected yearly. The lease ended in 2089. Taking into account 64 years as a residual term we calculated the premium to the landlord to extend the lease to be between £19,000 and £22,000 not including fees.
Mr George Petit purchased a first floor apartment in Woburn in February 2005. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Similar residencies in Woburn with 100 year plus lease were valued around £184,000. The average amount of ground rent was £55 collected annually. The lease expired on 1 October 2078. Considering the 53 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £28,500 and £33,000 plus fees.