The only way is down when it comes to Woodborough lease terms. Woodborough leaseholds that have a remaining term lower than 80 years will drop in market price at a rapid rate, and the cost to extend your lease will go up.
Leasehold properties in Woodborough with in excess of 100 years outstanding 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 property. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Godiva Mortgages | 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
| 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. |
The lawyers that we work with undertake Woodborough 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 conveyancing solicitor we work with provide it.
In 2014 Hunter, came seriously close to the eighty-year threshold with the lease on his garden apartment in Woodborough. In buying his property two decades ago, the lease term was of no relevance. by good luck, he became aware that he needed to take steps soon on Extending the lease. Hunter extended the lease at the eleventh hour in April. Hunter and the freeholder ultimately settled on an amount of £5,000 . If the lease had descended lower than 80 years, the figure would have increased by at least £1,000.
Last Autumn we were contacted by Dr D Kelly , who took over the lease of a garden apartment in Woodborough in June 1998. We are asked if we could estimate the premium could be to prolong the lease by ninety years. Comparable premises in Woodborough with a long lease were in the region of £250,400. The mid-range ground rent payable was £65 collected every twelve months. The lease end date was on 16 May 2090. Considering the 64 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £19,000 and £22,000 exclusive of professional charges.
In 2014 we were phoned by Mr and Mrs. O Ramírez who, having took over the lease of a purpose-built apartment in Woodborough in May 1996. The question was if we could estimate the premium could be for a 90 year extension to my lease. Comparative properties in Woodborough with an extended lease were worth £189,000. The mid-range amount of ground rent was £55 collected quarterly. The lease ended in 2079. Given that there were 53 years unexpired we estimated the compensation to the freeholder to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.