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 lease has, more than 99 years to run then this decrease may be of little impact that being said there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease without delay. Many flat owners in Woburn will qualify for this right; however a conveyancer will be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Woburn with over one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
The conveyancers that we work with handle 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 lawyer we work with provide it.
Last Winter Kai, started to get near to the 80-year mark with the lease on his studio apartment in Woburn. Having bought his home two decades ago, the unexpired term was of no concern. Luckily, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Kai extended the lease at the eleventh hour in January. Kai and the landlord who owned the flat above ultimately settled on a premium of £6,000 . If the lease had fallen to less than 80 years, the figure would have become more costly by at least £1,150.
In 2012 we were e-mailed by Mr Ollie Mitchell who, having owned a recently refurbished flat in Woburn in April 1997. The dilemma was if we could shed any light on how much (approximately) price would likely be for a 90 year lease extension. Comparative homes in Woburn with 100 year plus lease were in the region of £200,000. The average ground rent payable was £50 collected annually. The lease ran out in 2103. Taking into account 77 years remaining we estimated the compensation to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of expenses.
Mr and Mrs. B Richardson was assigned a lease of a one bedroom apartment in Woburn in September 2010. We are asked if we could estimate the premium could be for a 90 year lease extension. Comparative homes in Woburn with 100 year plus lease were valued about £260,200. The mid-range ground rent payable was £65 billed annually. The lease lapsed on 27 August 2092. Taking into account 66 years unexpired we calculated the premium to the landlord for the lease extension to be between £16,200 and £18,600 not including fees.