When it comes to residential leasehold premises in Woodingdean, you are actually purchasing a right to reside in a property for a set period of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner as opposed to later. Accepted thinking is that the shorter the number of years is the cost of extending the lease becomes disproportionately more expensive particularly once there are fewer than eighty years left. Leasehold owners in Woodingdean with a lease approaching 81 years unexpired should seriously think of extending it as soon as possible. Once a lease has under 80 years left, under the current Act the landlord is entitled to calculate and demand a larger premium, assessed on a technical calculation, known as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with in excess of 100 years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be equivalent in value to a freehold for many years ahead.
| 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; |
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
Engaging our service will provide you better control over the value of your Woodingdean leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Noah owned a high value flat in Woodingdean on the market with a lease of fraction over 59 years outstanding. Noah informally approached his landlord being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £150 per annum and doubled every 25 years thereafter. No ground rent would be payable on a lease extension were Noah to exercise his statutory right. Noah procured expert advice and secured an acceptable deal informally and readily saleable.
In 2011 we were approached by Dr I Howard who, having bought a purpose-built apartment in Woodingdean in January 2002. The question was if we could approximate the premium would be to prolong the lease by 90 years. Identical properties in Woodingdean with 100 year plus lease were worth £171,800. The average amount of ground rent was £55 invoiced per annum. The lease elapsed on 21 September 2075. Considering the 50 years left we calculated the compensation to the freeholder for the lease extension to be between £33,300 and £38,400 plus expenses.
In 2011 we were called by Dr Oliver François who, having was assigned a lease of a recently refurbished apartment in Woodingdean in September 2009. The dilemma was if we could shed any light on how much (approximately) price could be to extend the lease by 90 years. Comparative homes in Woodingdean with an extended lease were in the region of £280,000. The mid-range amount of ground rent was £45 billed annually. The lease lapsed on 6 January 2095. Considering the 70 years outstanding we calculated the compensation to the freeholder for the lease extension to be within £12,400 and £14,200 exclusive of expenses.