Unfortunately that a Woburn residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the first few years due to the loss of value being disguised by increases in the Woburn property prices.Where your lease has approximately 90 years left, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under eighty years - otherwise a higher amount will be payable. Most leasehold owners in Woburn will be able to extend under the legislation; however a conveyancer will be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold premises in Woburn with over 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Lease extensions in Woburn can be a difficult process. We recommend you secure guidance from a conveyancing solicitor and surveyor with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Woburn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Oliver was the the leasehold owner of a 2 bedroom apartment in Woburn being sold with a lease of just over 59 years unexpired. Oliver on an informal basis contacted his landlord being a well known Bristol-based freehold company for a lease extension. The landlord was keen to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 yearly. No ground rent would be due on a lease extension were Oliver to invoke his statutory right. Oliver procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
In 2014 we were contacted by Mr and Mrs. R Lewis who, having moved into a purpose-built apartment in Woburn in May 2001. We are asked if we could approximate the price would be for a 90 year extension to my lease. Similar homes in Woburn with a long lease were worth £243,000. The average amount of ground rent was £65 invoiced every twelve months. The lease ran out on 4 October 2088. Taking into account 63 years left we estimated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 not including expenses.
Dr Lily Morris purchased a one bedroom apartment in Woburn in November 1999. The question was if we could approximate the premium would likely be to prolong the lease by 90 years. Comparable homes in Woburn with 100 year plus lease were valued around £181,600. The average ground rent payable was £55 collected per annum. The lease ended on 4 June 2077. Having 52 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £30,400 and £35,200 not including fees.