Woodford Green leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. Most owners of residential leasehold property in Woodford Green enjoy rights under legislation to extend the terms of their leases. If you are a leasehold owner in Woodford Green you must check if your lease has between 70 and 90 years left. There are good reasons why a Woodford Green flat owner with a lease having around eighty years unexpired should take action to make sure that a lease extension is put in place without delay
It is generally considered that a residential leasehold with over one hundred years remaining is worth roughly the same as a freehold. Where an further ninety years added to any lease with more than 35 years remaining, the premises will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| 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 |
The conveyancing solicitors that we work with procure Woodford Green lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Jake owned a conversion apartment in Woodford Green on the market with a lease of a little over sixty years unexpired. Jake on an informal basis spoke with his landlord a well known London-based freehold company and enquired on a premium to extend the lease. The freeholder was keen to give an extension on non-statutory terms taking the lease to 125 years subject to a new rent at the outset set at £100 per annum and increase every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Jake to exercise his statutory right. Jake obtained expert legal guidance and was able to make an informed decision and deal with the matter and readily saleable.
In 2010 we were approached by Mr and Mrs. P Young who, having bought a purpose-built apartment in Woodford Green in February 2001. We are asked if we could shed any light on how much (approximately) premium would be for a ninety year lease extension. Identical premises in Woodford Green with an extended lease were in the region of £300,000. The mid-range ground rent payable was £50 collected per annum. The lease ran out in 2101. Taking into account 76 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including costs.
An example of a Freehold Enfranchisement case for a Woodford Green residence is 201 & 201a St. Barnabas Road in October 2013. The Tribunal decided that the price to be paid by the Applicants for the freehold interest is £20,071. This case related to 2 flats. The unexpired residue of the current lease was 69.26 years.