There is no doubt about it a leasehold property in Woodcote is a wasting asset as a result of the shortening lease. Where the residual term has, more than 100 years remaining then this decrease may be fractional nevertheless there will become a point in time when a lease has fewer than eighty years remaining as part of the premium you will incur is what is known as a marriage value. This could increase sharply the cost. It is the main rational as to why you should extend the lease without delay. The majority of flat owners in Woodcote will qualify for this right; however a conveyancer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
Leasehold properties in Woodcote with in excess of one hundred years remaining on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Coventry Building Society | 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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 |
Engaging our service gives you enhanced control over the value of your Woodcote leasehold, as your property will be more valuable and marketable in relation to the lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Leo owned a 2 bedroom apartment in Woodcote on the market with a lease of a few days over 72 years unexpired. Leo on an informal basis spoke with his landlord a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £150 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Leo to exercise his statutory right. Leo obtained expert legal guidance and was able to make an informed decision and deal with the matter and sell the property.
Ms F Mitchell took over the lease of a purpose-built apartment in Woodcote in July 2006. The question was if we could shed any light on how much (approximately) premium could be to prolong the lease by a further 90 years. Comparable properties in Woodcote with 100 year plus lease were in the region of £265,200. The average amount of ground rent was £65 billed monthly. The lease concluded in 2091. Having 66 years remaining we approximated the premium to the landlord to extend the lease to be within £15,200 and £17,600 exclusive of legals.
In 2010 we were approached by Ms A Morgan who, having completed a one bedroom apartment in Woodcote in February 1997. We are asked if we could approximate the compensation to the landlord would be for a ninety year extension to my lease. Comparable homes in Woodcote with a long lease were valued about £198,800. The average amount of ground rent was £55 invoiced monthly. The lease came to a finish on 1 February 2080. Given that there were 55 years unexpired we estimated the premium to the freeholder to extend the lease to be between £33,300 and £38,400 exclusive of professional charges.