Woburn leases on domestic deteriorating in value. Where your lease has in the region of ninety years remaining, you should start considering the need for a lease extension. If lease term is under eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Leasehold owners in Woburn will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancer to check if you qualify. In some cases you may not be entitled. There are prescribed deadlines and formalities to follow once the process has started so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Woburn,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Woburn valuers.
Kai owned a high value apartment in Woburn being marketed with a lease of a few days over 72 years outstanding. Kai on an informal basis contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to extend the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Kai to exercise his statutory right. Kai obtained expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Last Autumn we were contacted by Mr and Mrs. R Watson , who completed a recently refurbished flat in Woburn in March 2012. We are asked if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Identical premises in Woburn with 100 year plus lease were in the region of £181,600. The mid-range ground rent payable was £55 billed annually. The lease end date was in 2077. Given that there were 52 years remaining we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 exclusive of professional charges.
Dr H Vincent was assigned a lease of a one bedroom flat in Woburn in April 2007. We are asked if we could estimate the price would likely be to prolong the lease by ninety years. Comparable homes in Woburn with an extended lease were in the region of £285,000. The average amount of ground rent was £45 invoiced monthly. The lease finished on 3 November 2097. Considering the 72 years remaining we approximated the compensation to the landlord for the lease extension to be within £12,400 and £14,200 exclusive of fees.