The market value of Woodbury leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can escalate materialy once the remaining term is less than eighty years
Leasehold residencies in Woodbury with over 100 years remaining 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 to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Halifax | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset 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 |
| 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. |
The lawyers that we work with procure Woodbury 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.
Last Winter Stanley, came precariously close to the 80-year threshold with the lease on his first floor flat in Woodbury. In buying his home two decades ago, the length of the lease was of little interest. by good luck, he recognised he needed to take action soon on Extending the lease. Stanley extended the lease just under the wire in July. Stanley and the landlord eventually agreed on an amount of £6,000 . If he failed to meet the deadline, the premium would have increased by at least £925.
Last Summer we were phoned by Ms T Johnson , who purchased a garden flat in Woodbury in September 2000. The question was if we could approximate the premium would likely be to extend the lease by an additional years. Comparative flats in Woodbury with 100 year plus lease were valued around £250,400. The mid-range ground rent payable was £65 invoiced quarterly. The lease concluded on 18 June 2089. Taking into account 64 years left we approximated the compensation to the freeholder for the lease extension to be within £19,000 and £22,000 not including fees.
In 2009 we were e-mailed by Mr and Mrs. U Lee who, having took over the lease of a garden flat in Woodbury in June 1995. We are asked if we could approximate the premium would likely be to extend the lease by 90 years. Similar homes in Woodbury with 100 year plus lease were valued about £189,000. The mid-range ground rent payable was £55 collected monthly. The lease elapsed in 2078. Having 53 years outstanding we calculated the premium to the landlord to extend the lease to be between £28,500 and £33,000 exclusive of professional charges.