Woodcote Green residential property held on a long lease is a depreciating asset as the leaseholder only owns the property for a set term.
It is generally considered that a residential leasehold with over one hundred years unexpired lease term is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 35 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
| 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 |
Regardless of whether you are a tenant or a freeholder in Woodcote Green,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Woodcote Green valuers.
George owned a high value flat in Woodcote Green on the market with a lease of fraction over 61 years outstanding. George on an informal basis approached his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £150 per annum and increase every 25 years thereafter. No ground rent would be payable on a lease extension were George to exercise his statutory right. George obtained expert legal guidance and was able to make a more informed decision and handle with the matter and readily saleable.
Mr Ali Richardson completed a ground floor flat in Woodcote Green in August 2006. We are asked if we could shed any light on how much (approximately) premium would likely be for a 90 year lease extension. Similar flats in Woodcote Green with 100 year plus lease were worth £285,000. The average ground rent payable was £55 collected quarterly. The lease came to a finish in 2106. Given that there were 80 years left we calculated the premium to the landlord for the lease extension to be between £12,400 and £14,200 exclusive of costs.
An example of a Lease Extension decision for a Woodcote Green flat 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 was in relation to 1 flat. The unexpired lease term was 71.73 years.