When it comes to long leasehold premises in Woldingham, you are actually buying an entitlement to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may consider extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly when there are less than 80 years remaining. Residents in Woldingham with a lease drawing near to 81 years left should seriously think of extending it sooner than later. Once the lease term has under eighty years remaining, under the current Act the freeholder is entitled to calculate and demand a greater premium, based on a technical calculation, strangely termed as “marriage value” which is due.
It is conventional wisdom that a property with more than one hundred years unexpired lease term is worth roughly the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 Woldingham,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 experience and the close ties they enjoy with Woldingham valuers.
Following protracted discussions with the freeholder of her purpose-built apartment in Woldingham, Phoebe commenced the lease extension process as the 80 year threshold was swiftly coming. The lease extension completed in November 2008. The freeholder’s costs were negotiated to under 600 GBP.
Last month we were phoned by Mr and Mrs. M Peterson , who bought a one bedroom apartment in Woldingham in February 2001. The dilemma was if we could approximate the compensation to the landlord would likely be to prolong the lease by ninety years. Similar flats in Woldingham with a long lease were valued around £270,000. The average ground rent payable was £65 collected every twelve months. The lease expired on 8 May 2094. Considering the 68 years remaining we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 not including legals.
An example of a Freehold Enfranchisement decision for a Woldingham flat is 223 Brighton Road in September 2013. The premium payable for the acquisition freehold of the properties should be £10,934 (Ten thousand,nine hundred and thirty four pounds) This case related to 3 flats. The unexpired residue of the current lease was 75 years.