The value of Woodcote leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of extending the lease can escalate materialy once the remaining term is below than 80 years
Leasehold residencies in Woodcote with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges warrant 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. |
| 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. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Woodcote,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Woodcote valuers.
Ryan owned a high value apartment in Woodcote on the market with a lease of a few days over sixty years unexpired. Ryan on an informal basis contacted his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years subject to a new rent to start with set at £150 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Ryan to exercise his statutory right. Ryan obtained expert advice and was able to make an informed judgement and handle with the matter and ending up with a market value flat.
In 2011 we were e-mailed by Mr and Mrs. U Sharif who, having purchased a one bedroom apartment in Woodcote in October 2000. We are asked if we could approximate the compensation to the landlord could be to extend the lease by ninety years. Comparable residencies in Woodcote with 100 year plus lease were in the region of £196,400. The average amount of ground rent was £55 collected yearly. The lease ran out on 12 February 2079. Given that there were 54 years unexpired we estimated the premium to the landlord for the lease extension to be within £34,200 and £39,600 not including professional charges.
In 2014 we were e-mailed by Dr Tommy Green who, having completed a purpose-built flat in Woodcote in January 1999. We are asked if we could estimate the price could be for a 90 year extension to my lease. Similar premises in Woodcote with a long lease were worth £295,000. The mid-range amount of ground rent was £45 collected yearly. The lease end date was on 4 July 2099. Taking into account 74 years remaining we approximated the premium to the landlord for the lease extension to be between £8,600 and £9,800 not including professional charges.