Chances are that where you own a flat in Woodhouse Eaves you actually own a long leasehold interest over your property
Leasehold residencies in Woodhouse Eaves with more than one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Woodhouse Eaves,the lease extension solicitors that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Woodhouse Eaves valuers.
Off the back of lengthy discussions with the freeholder of her studio apartment in Woodhouse Eaves, Rhiannon initiated the lease extension process just as the lease was nearing the crucial eighty-year threshold. The legal work was finalised in February 2015. The freeholder’s costs were kept to an absolute minimum.
In 2012 we were approached by Mr and Mrs. R Gunderson who, having completed a studio flat in Woodhouse Eaves in January 2007. The dilemma was if we could approximate the premium would likely be for a ninety year extension to my lease. Comparable properties in Woodhouse Eaves with an extended lease were worth £243,000. The average amount of ground rent was £65 collected every twelve months. The lease end date was in 2088. Given that there were 63 years remaining we estimated the premium to the freeholder for the lease extension to be between £20,000 and £23,000 exclusive of costs.
Dr H Turner bought a garden apartment in Woodhouse Eaves in September 1996. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be for a ninety year extension to my lease. Identical residencies in Woodhouse Eaves with a long lease were valued about £181,600. The mid-range amount of ground rent was £55 billed annually. The lease terminated in 2077. Taking into account 52 years unexpired we calculated the premium to the freeholder to extend the lease to be within £30,400 and £35,200 not including fees.