Woodhall Spa residential property owned on a long lease is a depreciating asset as the leaseholder merely owns the property for a period of years.
Leasehold properties in Woodhall Spa with more than 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges merit 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Chelsea 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date 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. |
Using our service gives you enhanced control over the value of your Woodhall Spa leasehold, as your property will be more valuable and saleable in relation to the lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the landlord of her basement apartment in Woodhall Spa, Chantelle commenced the lease extension process as the eighty year threshold was quickly coming. The lease extension was concluded in August 2014. The landlord’s fees were negotiated to a tad over 700 GBP.
Last Summer we were phoned by Mr and Mrs. K Nguyen , who owned a one bedroom flat in Woodhall Spa in April 2012. The dilemma was if we could shed any light on how much (approximately) price would be to prolong the lease by a further 90 years. Similar properties in Woodhall Spa with a long lease were in the region of £200,000. The mid-range amount of ground rent was £50 billed yearly. The lease expired on 17 November 2102. Having 77 years as a residual term we estimated the compensation to the freeholder for the lease extension to be within £8,600 and £9,800 plus fees.
Mrs S Thomas acquired a recently refurbished flat in Woodhall Spa in July 2006. We are asked if we could approximate the compensation to the landlord would be for a ninety year lease extension. Comparable flats in Woodhall Spa with 100 year plus lease were in the region of £265,200. The mid-range ground rent payable was £65 invoiced per annum. The lease expired on 27 October 2091. Taking into account 66 years outstanding we calculated the premium to the freeholder to extend the lease to be between £15,200 and £17,600 not including legals.