Why you should commence your Woodbury lease extension

Why you should start your Woodbury lease extension today:

A Woodbury lease depreciates with the years remaining on the lease.

With a long leasehold property in Woodbury, you are actually purchasing an entitlement to live in a property for a prescribed time frame. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you may think about extending the lease sooner rather than later. Accepted thinking is that the shorter the number of years is the cost of extending the lease gets disproportionately greater especially when there are fewer than eighty years left. Leasehold owners in Woodbury with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has less than eighty years left, under the current statute the landlord is entitled to calculate and charge a larger amount, based on a technical computation, known as “marriage value” which is payable.

Woodbury property with a lease extension is almost the same value as a freehold

It is conventional wisdom that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.

Banks and Building Societies may not issue a mortgage with a short lease

The trend since 2008 has been for banks to tighten lending criteria generally - this has extended to the property over which the home loan is to be charged. This has meant the minimum number of years remaining under the lease required by banks has increased. In the past banks were content with twenty years plus the term of the loan - typically 50 year leases but those requirements are being increasingly undermined by the requirement for lengthy leases - many now have a minimum term of 75 years as a prerequisite.

Why use us for your lease extension in Woodbury?

Regardless of whether you are a tenant or a landlord in Woodbury,the lease extension experts that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Woodbury valuers.

Woodbury Lease Extension Example Cases:

Ibrahim, Woodbury, Devon,

Ibrahim owned a 2 bedroom flat in Woodbury on the market with a lease of a little over fifty eight years outstanding. Ibrahim informally contacted his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent at the outset set at £200 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Ibrahim to invoke his statutory right. Ibrahim procured expert advice and was able to make a more informed decision and deal with the matter and readily saleable.

Woodbury case:

Last Winter we were called by Dr Zachary Anderson , who moved into a purpose-built flat in Woodbury in May 1998. The dilemma was if we could estimate the price could be to prolong the lease by a further 90 years. Identical homes in Woodbury with an extended lease were in the region of £240,600. The average amount of ground rent was £60 collected yearly. The lease lapsed in 2088. Considering the 62 years remaining we calculated the compensation to the landlord for the lease extension to be between £21,900 and £25,200 exclusive of professional charges.

Woodbury case:

In 2011 we were e-mailed by Dr Aarav Brown who, having acquired a purpose-built flat in Woodbury in March 2003. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparative homes in Woodbury with a long lease were valued about £174,200. The average amount of ground rent was £55 invoiced monthly. The lease came to a finish on 13 September 2077. Given that there were 51 years as a residual term we estimated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of fees.