Woodbury leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and as a result any extension of the lease gets more expensive. It is the case that most Woodbury tenants have the right to extend their lease by an additional ninety years in accordance with the 1993 Leasehold Reform Act. If you are a leasehold owner in Woodbury you must investigate if your lease has between seventy and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you will incur is what is known as a marriage value
It is conventional wisdom that a property with over 100 years remaining is worth approximately the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service gives you increased control over the value of your Woodbury leasehold, as your property will be more valuable and marketable 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.
Half a year ago Alfie, started to get near to the eighty-year mark with the lease on his basement flat in Woodbury. Having bought his flat two decades ago, the unexpired term was of minimal relevance. Thankfully, he recognised he would imminently be paying way over the odds for Extending the lease. Alfie was able to extend his lease at the eleventh hour last March. Alfie and the landlord who owned the flat above ultimately settled on sum of £5,500 . If the lease had dropped to less than 80 years, the figure would have gone up by at least £1,100.
Dr B Sánchez moved into a garden apartment in Woodbury in June 2003. We are asked if we could approximate the price could be for a ninety year lease extension. Identical residencies in Woodbury with a long lease were in the region of £233,200. The average amount of ground rent was £60 invoiced annually. The lease ended in 2087. Considering the 61 years remaining we approximated the compensation to the freeholder to extend the lease to be between £22,800 and £26,400 plus expenses.
Mr and Mrs. T Dupont acquired a studio apartment in Woodbury in May 1997. The question was if we could approximate the compensation to the landlord would likely be to prolong the lease by 90 years. Comparative homes in Woodbury with an extended lease were worth £171,800. The average amount of ground rent was £55 billed every twelve months. The lease lapsed in 2076. Considering the 50 years unexpired we estimated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 not including fees.