When it comes to domestic leasehold premises in Woodbury, you are actually buying a right to live in a property for a prescribed time frame. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should consider extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Anyone in Woodbury with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. Once a lease has fewer than eighty years left, under the relevant statute the freeholder is entitled to calculate and demand a greater amount, assessed on a technical computation, known as “marriage value” which is due.
Leasehold properties in Woodbury with over 100 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Woodbury,the lease extension experts that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Woodbury valuers.
William owned a 2 bedroom flat in Woodbury being sold with a lease of a little over fifty eight years outstanding. William informally approached his freeholder a well known Manchester-based freehold company for a lease extension. The freeholder was keen to grant an extension on non-statutory terms taking the lease to 125 years subject to an increased rent to £200 annually. Ordinarily, ground rent would not be payable on a lease extension were William to invoke his statutory right. William procured expert advice and was able to make an informed decision and handle with the matter and sell the flat.
In 2009 we were called by Dr R Lee who, having completed a ground floor flat in Woodbury in September 2003. We are asked if we could shed any light on how much (approximately) price would likely be for a ninety year extension to my lease. Comparable premises in Woodbury with an extended lease were valued around £285,000. The average amount of ground rent was £45 invoiced yearly. The lease ended on 14 July 2096. Having 71 years outstanding we estimated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus professional charges.
Mrs Chelsea Adams owned a first floor apartment in Woodbury in January 1999. The question was if we could estimate the price would likely be for a 90 year lease extension. Comparable flats in Woodbury with a long lease were valued around £225,800. The mid-range ground rent payable was £60 billed per annum. The lease came to a finish in 2085. Considering the 60 years left we approximated the premium to the landlord to extend the lease to be between £23,800 and £27,400 plus professional charges.