There is no doubt about it a leasehold flat or house in Woodbridge is a wasting asset as a result of the shortening lease. If the residual term has, beyond one hundred years to run then this decrease may be negligible nevertheless there will become a point in time when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending without delay. Many flat owners in Woodbridge will qualify for this right; however a conveyancing solicitor should be able to confirm whether you qualify to extend your lease. In certain 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 more than one hundred years outstanding on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Engaging our service will provide you better control over the value of your Woodbridge leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
During the course of the last few months Rory, started to get close to the 80-year mark with the lease on his leasehold flat in Woodbridge. In buying his flat 19 years ago, the lease term was of no relevance. Luckily, it dawned on him that he would imminently be paying an inflated amount for Extending the lease. Rory arranged for a lease extension at the eleventh hour last March. Rory and the freeholder eventually settled on a premium of £5,000 . If he had missed the deadline, the figure would have gone up by at least £900.
In 2009 we were phoned by Mrs V Rivera who, having moved into a studio flat in Woodbridge in January 2008. We are asked if we could shed any light on how much (roughly) compensation to the landlord could be to extend the lease by 90 years. Comparative residencies in Woodbridge with an extended lease were valued about £227,800. The average amount of ground rent was £45 invoiced quarterly. The lease ended in 2091. Considering the 65 years left we approximated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.
Last Spring we were e-mailed by Dr Sophia Scott , who owned a garden apartment in Woodbridge in July 1995. We are asked if we could estimate the compensation to the landlord would be to extend the lease by an additional years. Similar flats in Woodbridge with an extended lease were in the region of £275,000. The average amount of ground rent was £55 billed per annum. The lease ended on 21 October 2102. Taking into account 76 years outstanding we approximated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 not including costs.