The value of Woodhall Spa leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The cost of a lease extension can increase materialy once the remaining term is below than eighty years
Leasehold residencies in Woodhall Spa with over 100 years outstanding on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. 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. |
| 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 be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| 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. |
| Yorkshire Building Society | 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. |
The conveyancers that we work with handle Woodhall Spa 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 lawyer we work with provide it.
Subsequent to protracted discussions with the freeholder of her garden apartment in Woodhall Spa, Imogen started the lease extension process just as the lease was approaching the all-important 80-year threshold. The transaction was finalised in July 2006. The freeholder’s charges were restricted to approximately 600 GBP.
Last Summer we were contacted by Mr and Mrs. S Morel , who completed a ground floor apartment in Woodhall Spa in February 2005. We are asked if we could estimate the premium could be to extend the lease by 90 years. Similar properties in Woodhall Spa with a long lease were valued around £248,000. The mid-range ground rent payable was £65 billed annually. The lease lapsed on 28 February 2089. Considering the 63 years left we calculated the compensation to the freeholder to extend the lease to be within £20,000 and £23,000 not including professional charges.
In 2010 we were called by Mrs Amy Lefebvre who, having owned a one bedroom flat in Woodhall Spa in April 1998. The question was if we could approximate the price could be for a ninety year lease extension. Comparative properties in Woodhall Spa with an extended lease were valued around £181,600. The average amount of ground rent was £55 collected annually. The lease termination date was on 25 June 2078. Given that there were 52 years outstanding we calculated the premium to the landlord to extend the lease to be within £30,400 and £35,200 not including expenses.