The rule of thumb is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Wooburn Green have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. Please think carefully before delaying your Wooburn Green lease extension. Postponing that expense now simply increases the premium you will eventually have to pay to extend the lease.
It is generally considered that a residential leasehold with in excess of 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years left, the property will be equivalent in value to a freehold for decades to come.
| 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. |
| Bank of Scotland | 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. |
| 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. |
| 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 landlord in Wooburn Green,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 Wooburn Green valuers.
Ali owned a studio apartment in Wooburn Green being sold with a lease of a little over 59 years left. Ali on an informal basis spoke with his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £125 yearly. No ground rent would be payable on a lease extension were Ali to invoke his statutory right. Ali obtained expert legal guidance and was able to make a more informed judgement and deal with the matter and sell the flat.
In 2013 we were contacted by Ms C Young who, having purchased a first floor apartment in Wooburn Green in November 2008. We are asked if we could shed any light on how much (roughly) premium could be for a 90 year extension to my lease. Comparative homes in Wooburn Green with an extended lease were in the region of £168,800. The average amount of ground rent was £60 collected annually. The lease terminated in 2081. Considering the 55 years outstanding we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of legals.
In 2010 we were approached by Ms Sophia Parker who, having purchased a ground floor apartment in Wooburn Green in August 2007. The question was if we could shed any light on how much (roughly) price would be for a 90 year lease extension. Identical flats in Wooburn Green with an extended lease were valued around £235,200. The average amount of ground rent was £45 collected quarterly. The lease lapsed in 2092. Taking into account 66 years outstanding we calculated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including expenses.