Woburn leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease gets more expensive. The majority of owners of residential leasehold property in Woburn enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Woburn you really ought to see if your lease has between 70 and 90 years remaining. There are compelling reasons why a Woburn leaseholder with a lease having around eighty years left should take steps to make sure that a lease extension is effected without delay
Leasehold properties in Woburn with more than 100 years unexpired on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit 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. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
Following protracted discussions with the landlord of her ground floor apartment in Woburn, Sophie started the lease extension process as the eighty year mark was rapidly advancing. The transaction was finalised in May 2012. The freeholder’s costs were restricted to less than 700 GBP.
Mr Michael Morel moved into a one bedroom flat in Woburn in July 2003. The question was if we could approximate the price would be to extend the lease by 90 years. Similar properties in Woburn with 100 year plus lease were worth £275,000. The mid-range amount of ground rent was £65 collected monthly. The lease expired on 28 February 2093. Taking into account 68 years outstanding we calculated the compensation to the landlord to extend the lease to be within £12,400 and £14,200 not including professional charges.
Last year we were approach by Mr and Mrs. F Mason , who took over the lease of a first floor flat in Woburn in February 2011. The dilemma was if we could estimate the premium could be for a ninety year extension to my lease. Similar flats in Woburn with 100 year plus lease were valued about £208,600. The mid-range amount of ground rent was £60 invoiced per annum. The lease lapsed on 24 January 2082. Having 57 years outstanding we approximated the compensation to the freeholder to extend the lease to be between £30,400 and £35,200 plus fees.