It’s an underpublicised certainty that a Woodbridge residential lease is a deteriorating asset. As the lease term diminishes so does the value of the property. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Woodbridge property prices.Once your lease gets to 85ish years, you need to start thinking about a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips under eighty years - otherwise a higher amount will be due. The majority of flat owners in Woodbridge will be able to extend under the legislation; however a lawyer will be able to clarify whether you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to be adhered to once the process is initiated and you will need to be guided by your conveyancing solicitor for the duration of the process.
Leasehold premises in Woodbridge with over one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 Woodbridge,the lease extension lawyers that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Woodbridge valuers.
Following protracted discussions with the freeholder of her first floor flat in Woodbridge, Caitlin started the lease extension process as the 80 year deadline was fast coming. The lease extension completed in March 2013. The freeholder’s charges were negotiated to under 500 GBP.
Dr Elizabeth Pérez bought a basement flat in Woodbridge in July 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by an additional years. Identical homes in Woodbridge with a long lease were in the region of £265,000. The average ground rent payable was £55 collected yearly. The lease ended in 2099. Given that there were 74 years outstanding we approximated the compensation to the landlord for the lease extension to be within £9,500 and £11,000 not including fees.
Last year we were approach by Ms P Martin , who acquired a recently refurbished apartment in Woodbridge in March 2012. The dilemma was if we could approximate the price would be to extend the lease by ninety years. Identical residencies in Woodbridge with 100 year plus lease were worth £166,400. The average amount of ground rent was £60 invoiced per annum. The lease concluded in 2079. Given that there were 54 years unexpired we estimated the premium to the freeholder for the lease extension to be between £32,300 and £37,400 plus fees.