As the length of the unexpired term of a Woodford domestic lease lessens so does its value and therefore the value of your property. Where the lease has, over 100 years to run then this decrease may be negligible that being said there will become a point in time when a lease has fewer than eighty years left as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease sooner as opposed to later. The majority of flat owners in Woodford will qualify for this right; nevertheless a conveyancing solicitor will be able to advise if you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a residential leasehold with over 100 years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Regardless of whether you are a tenant or a freeholder in Woodford,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Woodford valuers.
Zachary owned a studio apartment in Woodford on the market with a lease of a few days over 61 years outstanding. Zachary on an informal basis contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Zachary to exercise his statutory right. Zachary procured expert advice and was able to make an informed judgement and handle with the matter and sell the flat.
In 2014 we were contacted by Dr Harry Parker who, having purchased a one bedroom apartment in Woodford in October 2010. The dilemma was if we could estimate the price could be for a ninety year lease extension. Comparative residencies in Woodford with an extended lease were valued about £295,000. The mid-range ground rent payable was £45 billed yearly. The lease ended on 7 June 2099. Given that there were 74 years unexpired we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 plus professional charges.
An example of a Freehold Enfranchisement decision 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 related to 2 flats. The number of years remaining on the existing lease(s) was 69.26 years.