Woking leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of your lease gets more expensive. Most owners of residential leasehold property in Woking enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Woking you would be well advised to see if your lease has between seventy and ninety years remaining. There are good reasons why a Woking leaseholder with a lease having around 80 years left should take steps to ensure that a lease extension is actioned without delay
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 35 years left, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Woking,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 Woking valuers.
Last Spring Toby, came precariously close to the 80-year threshold with the lease on his first floor flat in Woking. In buying his home 19 years previously, the length of the lease was of no interest. As luck would have it, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Toby arranged for a lease extension just ahead of time in May. Toby and the landlord eventually settled on an amount of £5,500 . If he not met the deadline, the price would have escalated by a minimum £950.
Mrs Victoria Davis bought a recently refurbished flat in Woking in September 2008. The dilemma was if we could estimate the premium would be to prolong the lease by 90 years. Comparative flats in Woking with a long lease were valued about £198,800. The mid-range amount of ground rent was £55 collected per annum. The lease finished on 14 March 2081. Given that there were 55 years outstanding we approximated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 exclusive of expenses.
Last July we were approach by Dr F Scott , who was assigned a lease of a one bedroom apartment in Woking in September 2005. The dilemma was if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Similar properties in Woking with a long lease were worth £295,000. The average amount of ground rent was £50 invoiced every twelve months. The lease ended on 18 September 2101. Taking into account 75 years as a residual term we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus expenses.