Woking leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. The majority of 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 really ought to investigate if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under eighty years, the cost of any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Woking with more than 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Woking can be a difficult process. We recommend you procure guidance from a conveyancing solicitor 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 Woking lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following lengthy correspondence with the freeholder of her first floor apartment in Woking, Elizabeth initiated the lease extension process as the 80 year mark was fast coming. The transaction was concluded in April 2015. The landlord’s fees were restricted to under 550 GBP.
Last Christmas we were called by Mr and Mrs. I Miller , who bought a purpose-built flat in Woking in January 1999. We are asked if we could shed any light on how much (approximately) price would be to extend the lease by ninety years. Comparable residencies in Woking with a long lease were valued about £295,000. The mid-range amount of ground rent was £45 collected per annum. The lease finished in 2100. Taking into account 74 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 exclusive of expenses.
Last Summer we were phoned by Dr Aarav André , who took over the lease of a one bedroom flat in Woking in January 2007. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to extend the lease by a further 90 years. Comparative residencies in Woking with a long lease were in the region of £243,000. The mid-range ground rent payable was £65 billed per annum. The lease concluded on 28 February 2089. Taking into account 63 years as a residual term we calculated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 plus costs.