The nearer a domestic lease in Woodbridge nears to zero years unexpired, the more it reduces the value of the property. If the lease has, in excess of one hundred years to run then this decrease may be of little impact however there will become a stage when a lease has fewer than 80 years left as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the main rational as to why you should extend the lease without delay. Many flat owners in Woodbridge will meet the qualifying criteria; that being said a conveyancing solicitor can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold residencies in Woodbridge with over 100 years left 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 purchasing the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Retaining our service will provide you better control over the value of your Woodbridge leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Jake, came precariously close to the eighty-year threshold with the lease on his garden apartment in Woodbridge. In buying his home 18 years previously, the length of the lease was of little concern. As luck would have it, he realised he would soon be paying an inflated amount for Extending the lease. Jake was able to extend his lease at the eleventh hour last July. Jake and the landlord in the end settled on a premium of £6,000 . If the lease had slid lower than 80 years, the figure would have become more exhorbitant by at least £900.
Mr and Mrs. J Ali acquired a garden flat in Woodbridge in September 1998. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparative homes in Woodbridge with a long lease were in the region of £210,600. The mid-range ground rent payable was £45 billed yearly. The lease expired in 2087. Given that there were 62 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £18,100 and £20,800 exclusive of expenses.
Last Christmas we were approach by Mr K Walker , who purchased a one bedroom flat in Woodbridge in June 1996. The dilemma was if we could estimate the price would be for a 90 year extension to my lease. Comparable homes in Woodbridge with an extended lease were worth £265,000. The average amount of ground rent was £50 billed annually. The lease came to a finish on 26 November 2098. Given that there were 73 years as a residual term we approximated the premium to the landlord for the lease extension to be within £9,500 and £11,000 exclusive of professional charges.