Unfortunately that a Woodcote residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is taken for granted in the first few years due to the depreciation being disguised by increases in the Woodcote property market.Once your lease nears 85ish years, you need to start thinking about a lease extension. If the number of years remaining falls below eighty years, you will end up paying half of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. The marriage fee is the amount of extra value that a lease extension will add the property Most flat owners in Woodcote will be able to extend under the legislation; however a conveyancing solicitor will be able to confirm if you are eligibility. In some cases you may not qualify. There are also strict timeframes and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
Leasehold premises in Woodcote with more than one hundred years left on the lease are often referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a landlord in Woodcote,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 in-depth market knowledge and the close ties they enjoy with Woodcote valuers.
In the wake of eight months of unsuccessful negotiations with the freeholder of her purpose-built flat in Woodcote, Aimee started the lease extension process just as the lease was nearing the crucial 80-year mark. The transaction completed in May 2014. The landlord’s fees were restricted to approximately 700 pounds.
Last month we were e-mailed by Mr and Mrs. C Gómez , who purchased a purpose-built apartment in Woodcote in May 2005. We are asked if we could approximate the compensation to the landlord would be for a 90 year lease extension. Comparable premises in Woodcote with an extended lease were in the region of £181,600. The mid-range amount of ground rent was £55 billed every twelve months. The lease finished in 2078. Considering the 52 years as a residual term we approximated the compensation to the landlord to extend the lease to be within £30,400 and £35,200 not including costs.
Dr M Robinson was assigned a lease of a garden apartment in Woodcote in July 2007. We are asked if we could estimate the premium could be for a ninety year lease extension. Comparative properties in Woodcote with an extended lease were worth £290,000. The mid-range amount of ground rent was £45 collected every twelve months. The lease came to a finish on 23 January 2098. Having 72 years outstanding we approximated the compensation to the landlord for the lease extension to be between £11,400 and £13,200 not including legals.