With a residential leasehold property in Woodhouse Eaves, you effectively rent it for a certain amount of time. These days flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are fewer than 80 years remaining. Residents in Woodhouse Eaves with a lease approaching 81 years left should seriously consider extending it as soon as possible. When a lease has under 80 years remaining, under the current statute the freeholder can calculate and levy a larger premium, assessed on a technical multiplication, known as “marriage value” which is due.
Leasehold properties in Woodhouse Eaves with over 100 years remaining 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 situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Using our service gives you increased control over the value of your Woodhouse Eaves leasehold, as your property will be more valuable and saleable in terms of lease length should you want to sell. The conveyancers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Michael was the the leasehold proprietor of a 2 bedroom flat in Woodhouse Eaves on the market with a lease of fraction over 59 years unexpired. Michael informally contacted his freeholder being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Michael to invoke his statutory right. Michael procured expert legal guidance and was able to make a more informed decision and deal with the matter and ending up with a market value flat.
Last Christmas we were contacted by Dr W Khan , who purchased a one bedroom apartment in Woodhouse Eaves in January 2000. We are asked if we could approximate the compensation to the landlord would likely be for a 90 year lease extension. Comparable flats in Woodhouse Eaves with 100 year plus lease were valued about £206,200. The mid-range ground rent payable was £55 collected every twelve months. The lease end date was on 7 February 2082. Taking into account 56 years remaining we approximated the compensation to the freeholder to extend the lease to be within £31,400 and £36,200 exclusive of expenses.
In 2012 we were contacted by Ms Louise King who, having owned a one bedroom flat in Woodhouse Eaves in February 2010. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year extension to my lease. Comparative premises in Woodhouse Eaves with a long lease were valued about £300,000. The average ground rent payable was £50 invoiced yearly. The lease concluded in 2102. Considering the 76 years unexpired we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 exclusive of costs.