The re-sale value of a leasehold property in Woodcote Green depends on how long the lease has remaining. If it is near to or less than 80 years you should expect problems on re-sale, so it is advisable to arrange for the lease to be extended ahead of purchasing. It is preferable to start the lease extension process when the lease still has 82 years unexpired so that all matters can be concluded well before the 80 year threshold. Leasehold Reform legislation enables Woodcote Green qualifying lessees to an additional term of ninety years in addition to the remaining term, at a nominal rent (no ground rent). The purpose of the valuation is to determine the premium payable by the lessee to the freeholder for the acquisition of the lease extension.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Regardless of whether you are a tenant or a freeholder in Woodcote Green,the lease extension solicitors 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 Woodcote Green valuers.
Subsequent to lengthy discussions with the landlord of her purpose-built apartment in Woodcote Green, Catherine commenced the lease extension process just as her lease was nearing the all-important eighty-year mark. The transaction was concluded in October 2005. The freeholder’s fees were negotiated to less than six hundred pounds.
Last month we were approach by Dr Edward Kelly , who moved into a basement flat in Woodcote Green in January 2012. The dilemma was if we could approximate the premium could be to prolong the lease by ninety years. Comparative homes in Woodcote Green with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 collected per annum. The lease terminated on 27 November 2105. Having 79 years unexpired we estimated the premium to the freeholder for the lease extension to be within £13,300 and £15,400 exclusive of legals.
An example of a Lease Extension case for a Woodcote Green premises is Ground Floor Maisonette 17 Milton Road in January 2014. The Tribunal determined the premium payable by the Applicant to the should be £13,299 This case affected 1 flat. The unexpired lease term was 71.73 years.