For those whose Woldingham home is held on a long lease, the message is clear – if nothing is done, the property will eventually revert to the freeholder, leaving you empty-handed. The fewer the years remaining the lower the value of the property and the more it will cost to procure a lease extension.
Leasehold residencies in Woldingham with over 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Regardless of whether you are a tenant or a freeholder in Woldingham,the lease extension experts 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.
Andrew was the the leasehold owner of a conversion apartment in Woldingham on the market with a lease of just over fifty eight years outstanding. Andrew on an informal basis contacted his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. No ground rent would be due on a lease extension were Andrew to invoke his statutory right. Andrew obtained expert legal guidance and secured satisfactory deal informally and ending up with a market value flat.
In 2010 we were e-mailed by Dr Rory Harris who, having took over the lease of a studio apartment in Woldingham in June 1996. We are asked if we could shed any light on how much (approximately) price could be for a ninety year lease extension. Identical properties in Woldingham with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 collected every twelve months. The lease ran out on 22 April 2099. Taking into account 73 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £8,600 and £9,800 not including legals.
An example of a Freehold Enfranchisement matter before the tribunal 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 affected 3 flats. The unexpired lease term was 75 years.