Woodhouse Eaves leases on residential properties are gradually losing value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease becomes more expensive. It is the case that most Woodhouse Eaves tenants have the right to extend their lease by an additional 90 years under the 1993 Leasehold Reform Act. If you are a leasehold owner in Woodhouse Eaves you really ought to investigate if your lease has between seventy and 90 years remaining. There are good reasons why a Woodhouse Eaves flat owner with a lease having around 80 years remaining should take action to ensure that a lease extension is actioned without delay
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 45 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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; |
| 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. |
| 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with procure Woodhouse Eaves 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 lengthy correspondence with the freeholder of her leasehold flat in Woodhouse Eaves, Georgina commenced the lease extension process just as her lease was coming close to the crucial eighty-year threshold. The transaction was concluded in July 2007. The freeholder’s costs were kept to an absolute minimum.
Ms B Fournier purchased a ground floor flat in Woodhouse Eaves in May 2011. The question was if we could estimate the price could be to prolong the lease by an additional years. Comparable premises in Woodhouse Eaves with an extended lease were in the region of £280,000. The mid-range ground rent payable was £45 collected monthly. The lease finished in 2095. Given that there were 70 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 plus professional charges.
In 2011 we were approached by Mr and Mrs. L Young who, having took over the lease of a one bedroom apartment in Woodhouse Eaves in March 2000. We are asked if we could estimate the price would be to prolong the lease by a further 90 years. Comparative homes in Woodhouse Eaves with a long lease were worth £223,400. The average ground rent payable was £60 billed monthly. The lease ended in 2084. Having 59 years remaining we approximated the premium to the freeholder for the lease extension to be within £27,600 and £31,800 not including fees.