It’s a harsh certainty that a Woking residential lease is a wasting asset. As the lease term diminishes so does the value of the property. The extent of this is not fully appreciated in the early years due to the reduction being disguised by increases in the Woking property market.Where your lease has approximately 90 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 below eighty years - otherwise a higher premium will be payable. Most leasehold owners in Woking will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some situations you may not be entitled. 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 from beginning to end of the process.
Leasehold premises in Woking with more than one hundred years remaining 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 situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify 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. |
| 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. |
| 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Woking can be a difficult process. We recommend you secure guidance from a lawyer and valuer 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 a wealth of experience procuring Woking lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Connor owned a conversion apartment in Woking being marketed with a lease of a little over sixty years outstanding. Connor on an informal basis contacted his landlord a well known Bristol-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent initially set at £200 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Connor to exercise his statutory right. Connor obtained expert legal guidance and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
Mr and Mrs. B Smith took over the lease of a recently refurbished apartment in Woking in September 1998. We are asked if we could shed any light on how much (roughly) premium would likely be to prolong the lease by an additional years. Comparable properties in Woking with 100 year plus lease were valued around £295,000. The mid-range amount of ground rent was £45 collected quarterly. The lease ran out on 7 July 2100. Considering the 75 years as a residual term we estimated the premium to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of fees.
Last Spring we were phoned by Mrs Catherine Bennett , who was assigned a lease of a ground floor flat in Woking in March 2011. The question was if we could estimate the premium would be to extend the lease by 90 years. Comparable residencies in Woking with 100 year plus lease were valued about £250,400. The mid-range amount of ground rent was £65 collected quarterly. The lease termination date was on 23 May 2089. Given that there were 64 years remaining we estimated the compensation to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of professional charges.