It’s an underpublicised truth that a Woburn residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Woburn property market.Where your lease has approximately ninety years left, you should start considering 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 due. The majority of flat owners in Woburn will be able to extend under the legislation; however a lawyer should be able to clarify whether you qualify for an extension. In some situations you may not qualify. There are also strict timeframes and procedures to be adhered to once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is conventional wisdom that a property with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 35 years remaining, the property will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 procure guidance from a lawyer and valuer well versed in the legislation and lease extension process.
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 a wealth of experience dealing with Woburn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 6 months of protracted negotiations with the freeholder of her garden apartment in Woburn, Katherine started the lease extension process as the eighty year deadline was fast coming. The legal work completed in August 2009. The freeholder’s fees were kept to an absolute minimum.
In 2013 we were approached by Mrs H Wright who, having took over the lease of a purpose-built flat in Woburn in October 2007. The question was if we could estimate the price would be to extend the lease by ninety years. Comparative homes in Woburn with an extended lease were valued around £267,600. The mid-range ground rent payable was £65 collected quarterly. The lease concluded on 16 April 2092. Considering the 67 years left we estimated the compensation to the landlord for the lease extension to be between £14,300 and £16,400 exclusive of expenses.
Last month we were e-mailed by Mrs T Patel , who took over the lease of a basement apartment in Woburn in July 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Comparable residencies in Woburn with an extended lease were in the region of £201,200. The average ground rent payable was £55 collected quarterly. The lease ran out in 2081. Having 56 years left we calculated the compensation to the landlord to extend the lease to be between £31,400 and £36,200 plus costs.