As the length of the unexpired term of a Woodborough residential lease diminished so does its value and therefore the value of your property. If the residual term has, over 100 years remaining then this decrease may be of little impact nevertheless there will become a point in time when a lease has less than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase markedly the cost. It is the main rational as to why you should extend the lease without delay. Most flat owners in Woodborough will qualify for this right; however a lawyer will be able to advise whether you qualify for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
Leasehold premises in Woodborough with over one hundred years unexpired on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Leeds Building Society | 85 years remaining from the start 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before 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 freeholder in Woodborough,the lease extension solicitors that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Woodborough valuers.
Last year George, came perilously near to the eighty-year mark with the lease on his basement apartment in Woodborough. In buying his home two decades ago, the lease term was of little importance. Luckily, he became aware that he would imminently be paying an inflated amount for a lease extension. George was able to extend his lease at the eleventh hour in March. George and the landlord who owned the flat above ultimately settled on an amount of £5,000 . If the lease had descended to less than eighty years, the premium would have become more exhorbitant by at least £1,125.
Mrs E Khan completed a first floor apartment in Woodborough in May 2004. The question was if we could approximate the price could be to prolong the lease by a further 90 years. Comparative premises in Woodborough with a long lease were worth £171,800. The mid-range amount of ground rent was £55 invoiced annually. The lease came to a finish on 19 September 2076. Considering the 50 years unexpired we approximated the premium to the landlord for the lease extension to be within £33,300 and £38,400 not including professional charges.
Mr G Robinson moved into a recently refurbished apartment in Woodborough in August 2006. We are asked if we could approximate the premium would likely be for a ninety year lease extension. Identical properties in Woodborough with a long lease were valued about £280,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease ran out in 2096. Considering the 70 years unexpired we estimated the compensation to the landlord for the lease extension to be between £12,400 and £14,200 plus legals.