There is no doubt about it a leasehold property in Woodhouse Eaves is a wasting asset as a result of the diminishing lease term. If the lease has, over 125 years remaining then this decrease may be negligible nevertheless there will become a stage when a lease has less than 80 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 primary reason why you should extend the lease sooner than later. Many flat owners in Woodhouse Eaves will meet the qualifying criteria; nevertheless a lawyer can confirm if you are eligible for a lease extension. In limited situations you may not qualify, the most frequent reason being that you have owned the property for less than two years.
It is generally considered that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an additional 90 years added to all but the shortest lease, the residence will be worth the same as a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| 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. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Using our service will provide you increased control over the value of your Woodhouse Eaves leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
In 2014 Leo, started to get near to the 80-year mark with the lease on his leasehold flat in Woodhouse Eaves. Having bought his home twenty years previously, the length of the lease was of no significance. As luck would have it, he realised he would soon be paying an escalated premium for a lease extension. Leo was able to extend his lease at the eleventh hour in September. Leo and the landlord eventually settled on an amount of £5,500 . If he failed to meet the deadline, the premium would have escalated by at least £950.
In 2011 we were e-mailed by Mr and Mrs. R Nelson who, having took over the lease of a one bedroom flat in Woodhouse Eaves in November 2000. We are asked if we could approximate the compensation to the landlord would likely be for a ninety year lease extension. Identical flats in Woodhouse Eaves with an extended lease were valued around £191,400. The mid-range ground rent payable was £55 collected every twelve months. The lease concluded in 2080. Having 54 years unexpired we approximated the compensation to the landlord for the lease extension to be within £34,200 and £39,600 exclusive of costs.
Mr A Sánchez owned a garden apartment in Woodhouse Eaves in November 1999. The question was if we could estimate the premium would likely be to extend the lease by a further 90 years. Identical properties in Woodhouse Eaves with an extended lease were worth £295,000. The mid-range ground rent payable was £45 billed annually. The lease ended on 9 June 2100. Given that there were 74 years as a residual term we estimated the premium to the landlord for the lease extension to be between £8,600 and £9,800 plus fees.