Woodborough leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. An important point to note is that it is desirable for a lease extension to be in place before the term of the current lease drops under eighty years - otherwise a higher premium will be payable. Leasehold owners in Woodborough will usually qualify for a lease extension; however a solicitor should be able confirm if you qualify. In certain situations you may not qualify. There are prescribed timetables and formalities to comply with once the process has started so it’s wise to be guided by a conveyancing solicitor during the process.
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional 90 years added to any lease with more than 45 years left, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Lease extensions in Woodborough can be a difficult process. We recommend you procure professional help from a lawyer and valuer with experience in lease extensions.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience dealing with Woodborough lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In the wake of 9 months of protracted discussions with the freeholder of her studio apartment in Woodborough, Georgia commenced the lease extension process just as the lease was nearing the critical eighty-year threshold. The lease extension was finalised in June 2014. The landlord’s fees were restricted to approximately 450 pounds.
Last Christmas we were phoned by Dr Olivia Simon , who took over the lease of a one bedroom apartment in Woodborough in July 2008. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparable properties in Woodborough with an extended lease were worth £181,600. The mid-range amount of ground rent was £55 collected annually. The lease ended in 2078. Considering the 52 years unexpired we approximated the premium to the landlord to extend the lease to be between £30,400 and £35,200 exclusive of professional charges.
In 2014 we were contacted by Mrs Leah Ward who, having acquired a one bedroom flat in Woodborough in August 1998. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Identical residencies in Woodborough with an extended lease were valued around £285,000. The mid-range ground rent payable was £45 collected every twelve months. The lease ran out in 2098. Having 72 years unexpired we approximated the premium to the landlord to extend the lease to be between £12,400 and £14,200 plus costs.