With a residential leasehold property in Wooburn Green, you are actually buying an entitlement to reside in a property for a prescribed time frame. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a long period of time, you should think about extending the lease sooner rather than later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly especially once there are fewer than 80 years left. Residents in Wooburn Green with a lease approaching 81 years left should seriously consider extending it without delay. When a lease has fewer than eighty years left, under the current statute the freeholder is entitled to calculate and demand a greater amount, based on a technical multiplication, known as “marriage value” which is payable.
It is generally accepted that a property with more than 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises will be equivalent in value to a freehold for decades to come.
| 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. |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancing solicitors that we work with procure Wooburn Green 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.
In the wake of 9 months of lengthy correspondence with the landlord of her ground floor flat in Wooburn Green, Leah started the lease extension process as the eighty year threshold was rapidly approaching. The lease extension was concluded in June 2012. The freeholder’s charges were kept to an absolute minimum.
Last Summer we were contacted by Dr Eli González , who completed a one bedroom flat in Wooburn Green in February 2007. The question was if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Comparable premises in Wooburn Green with an extended lease were worth £250,000. The average amount of ground rent was £50 invoiced per annum. The lease ran out in 2094. Taking into account 69 years outstanding we estimated the compensation to the freeholder for the lease extension to be between £9,500 and £11,000 not including professional charges.
In 2009 we were phoned by Dr Kayleigh Leroy who, having moved into a garden flat in Wooburn Green in July 2000. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year extension to my lease. Similar premises in Wooburn Green with a long lease were in the region of £285,000. The average ground rent payable was £55 invoiced quarterly. The lease came to a finish in 2105. Given that there were 80 years unexpired we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of expenses.