The market value of Woodhall Spa leasehold residential property falls as the lease term becomes shorter and this will have an impact on its saleability. The expense of extending the lease can increase substantially once the remaining term is less than eighty years
Leasehold properties in Woodhall Spa with over one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and estate charges justify 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Coventry Building Society | 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. |
| 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. |
| 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. |
The conveyancing solicitors that we work with procure 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 conveyancing solicitor we work with provide it.
After protracted correspondence with the freeholder of her leasehold flat in Woodhall Spa, Rachael started the lease extension process as the 80 year threshold was quickly approaching. The lease extension was concluded in September 2009. The freeholder’s costs were restricted to approximately 700 pounds.
Dr U King owned a studio flat in Woodhall Spa in January 2005. The question was if we could shed any light on how much (roughly) price would likely be to prolong the lease by a further 90 years. Identical flats in Woodhall Spa with an extended lease were in the region of £216,000. The average ground rent payable was £60 invoiced yearly. The lease terminated on 15 September 2083. Given that there were 58 years unexpired we approximated the premium to the landlord to extend the lease to be between £28,500 and £33,000 plus fees.
Last Autumn we were called by Dr Dylan Cook , who moved into a recently refurbished apartment in Woodhall Spa in July 2004. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a 90 year extension to my lease. Identical properties in Woodhall Spa with a long lease were valued about £205,000. The average amount of ground rent was £50 collected monthly. The lease ended in 2103. Having 78 years left we estimated the compensation to the freeholder for the lease extension to be between £8,600 and £9,800 not including costs.