The basic rule is, all other things holding equal, the shorter the lease the more costly the premium. Qualifying leaseholders in Woodborough may extend the lease for an additional 90 years in accordance with statute. Do think carefully before delaying your Woodborough lease extension. Postponing that expense today simply escalates the premium you will eventually have to pay to extend the lease.
It is conventional wisdom that a property with in excess of one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further 90 years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| 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 |
| 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. |
Retaining our service will provide you increased control over the value of your Woodborough leasehold, as your property will be more valuable and saleable in relation to the lease length should you want to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted discussions with the landlord of her ground floor apartment in Woodborough, Alisha started the lease extension process as the eighty year threshold was swiftly advancing. The legal work was concluded in July 2008. The freeholder’s fees were restricted to a tad over 600 pounds.
Mrs Y Young acquired a ground floor apartment in Woodborough in September 1998. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable flats in Woodborough with an extended lease were in the region of £223,400. The average ground rent payable was £60 collected every twelve months. The lease ran out on 4 January 2084. Considering the 59 years outstanding we approximated the premium to the landlord for the lease extension to be between £27,600 and £31,800 not including fees.
In 2014 we were phoned by Mr L Ali who, having took over the lease of a studio apartment in Woodborough in July 2002. The question was if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Similar homes in Woodborough with 100 year plus lease were worth £205,000. The average ground rent payable was £50 invoiced annually. The lease ran out in 2104. Having 79 years unexpired we calculated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus professional charges.