Woodbridge leases on domestic deteriorating in value. Where your lease has about ninety years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then be required to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Woodbridge will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In certain situations you may not be entitled. There are also strict timetables and formalities to comply with once the process has started so it’s prudent to be guided by a lawyer during the process.
Leasehold residencies in Woodbridge with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 gives 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 wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Last year Max, started to get near to the 80-year mark with the lease on his purpose- built apartment in Woodbridge. Having purchased his home two decades ago, the unexpired term was of minimal interest. Thankfully, it dawned on him that he needed to take action soon on Extending the lease. Max arranged for a lease extension just ahead of time in April. Max and the freeholder eventually settled on an amount of £6,000 . If the lease had slipped below 80 years, the figure would have become more costly by at least £1,075.
In 2013 we were approached by Dr Joshua François who, having owned a one bedroom apartment in Woodbridge in January 1997. The question was if we could estimate the compensation to the landlord would likely be to prolong the lease by 90 years. Identical properties in Woodbridge with a long lease were valued about £246,800. The mid-range ground rent payable was £60 invoiced yearly. The lease came to a finish in 2075. Considering the 50 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £44,700 and £51,600 not including costs.
In 2013 we were e-mailed by Mr S Nelson who, having completed a first floor apartment in Woodbridge in April 1998. The question was if we could approximate the premium would be to prolong the lease by ninety years. Comparative homes in Woodbridge with a long lease were valued around £208,200. The mid-range ground rent payable was £65 collected every twelve months. The lease lapsed on 10 September 2086. Given that there were 61 years outstanding we estimated the compensation to the landlord for the lease extension to be between £19,000 and £22,000 not including legals.