Unfortunately that a Woodford residential lease is a deteriorating asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the depreciation being disguised by increases in the Woodford property market.Once your lease gets to 85ish years, you should start thinking about a lease extension. If the number of years remaining dips below 80 years, you will end up paying 50% of the property's 'marriage value' in addition to the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property Most flat owners in Woodford will be able to extend under the legislation; however a conveyancing solicitor should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict deadlines and procedures to be adhered to once the process is instigated and you will need to be guided by your conveyancer from beginning to end of the formalities.
Leasehold properties in Woodford with over 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 buying the reversionary interest unless savings on ground rent and maintenance charges warrant it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Barnsley Building Society | |
| Birmingham Midshires | |
| Coventry Building Society | |
| TSB |
Lease extensions in Woodford can be a difficult process. We recommend you obtain professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge procuring Woodford lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Jason, came precariously close to the eighty-year mark with the lease on his ground floor flat in Woodford. Having bought his home two decades ago, the length of the lease was of no relevance. Thankfully, he became aware that he would imminently be paying an inflated amount for a lease extension. Jason arranged for a lease extension at the eleventh hour last January. Jason and the freeholder via the managing agents subsequently agreed on an amount of £6,000 . If he failed to meet the deadline, the figure would have increased by at least £1,025.
In 2011 we were approached by Mrs Francesca Peterson who, having purchased a garden flat in Woodford in August 2012. We are asked if we could approximate the premium could be for a 90 year extension to my lease. Comparative residencies in Woodford with 100 year plus lease were worth £290,000. The average amount of ground rent was £45 invoiced every twelve months. The lease ended on 2 June 2099. Given that there were 73 years remaining we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 plus fees.
An example of a Freehold Enfranchisement matter before the tribunal for a Woodford premises 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 affected 2 flats. The number of years remaining on the existing lease(s) was 69.26 years.