The re-sale value of a leasehold property in Woldingham depends on how many years the lease has remaining. If it is near to or fewer than 80 years you should anticipate problems on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to start the lease extension process when a lease still has 82 years unexpired so that formalities can be concluded well before the eighty year cut off point. Statute entitles Woldingham qualifying lessees to a ninety year extension added to their remaining lease term (ie if your lease has fifty years left the statutory lease extension will provide a new term of 140 years). The reason of the valuation is to arrive at an opinion of the premium payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally considered that a residential leasehold with in excess of one hundred years remaining is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Engaging our service gives you enhanced control over the value of your Woldingham leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
In the wake of eight months of protracted negotiations with the freeholder of her garden apartment in Woldingham, Abigail commenced the lease extension process just as her lease was nearing the crucial 80-year deadline. The transaction was concluded in April 2005. The freeholder’s costs were negotiated to about 450 pounds.
In 2011 we were approached by Mr and Mrs. T Campbell who, having owned a purpose-built apartment in Woldingham in March 2004. The question was if we could approximate the compensation to the landlord would likely be for a ninety year extension to my lease. Comparative flats in Woldingham with a long lease were in the region of £174,200. The mid-range ground rent payable was £55 billed annually. The lease elapsed in 2076. Considering the 51 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 not including legals.
An example of a Freehold Enfranchisement decision for a Woldingham residence 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 was in relation to 3 flats. The unexpired term as at the valuation date was 75 years.