The market value of a leasehold property in Woking is impacted by how many years the lease has remaining. If it is close to or fewer than 80 years you should expect problems on re-sale, so it is advisable to arrange for a lease extension before buying. It is preferable to commence the lease extension process when the lease still has 82 years remaining so that all matters can be finalised well before the eighty year cut off point. Leasehold Reform legislation entitles Woking qualifying lessees to an additional term of ninety years over and above the remaining term, at a nominal rent (zero ground rent). The reason of the valuation is to determine the sum payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally considered that a property with in excess of 100 years remaining is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| 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 |
| 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. |
The conveyancing solicitors that we work with handle Woking 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 conveyancer we work with provide it.
Sam owned a 2 bedroom flat in Woking being sold with a lease of just over 72 years unexpired. Sam informally contacted his landlord being a well known local-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 an increased rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Sam to invoke his statutory right. Sam obtained expert advice and was able to make an informed judgement and deal with the matter and sell the property.
Last April we were contacted by Mr and Mrs. P Ricardo , who owned a garden apartment in Woking in June 2005. The question was if we could estimate the price could be for a ninety year lease extension. Comparative homes in Woking with a long lease were worth £225,800. The mid-range amount of ground rent was £60 billed annually. The lease lapsed in 2086. Given that there were 60 years as a residual term we approximated the compensation to the landlord to extend the lease to be between £23,800 and £27,400 not including expenses.
Dr Y Turner acquired a one bedroom apartment in Woking in October 1999. The question was if we could shed any light on how much (roughly) price could be to prolong the lease by an additional years. Identical properties in Woking with an extended lease were worth £210,000. The average amount of ground rent was £50 invoiced monthly. The lease terminated in 2106. Given that there were 80 years remaining we estimated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 exclusive of costs.