Woodingdean leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of your lease gets more expensive. The majority of owners of residential leasehold property in Woodingdean enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Woodingdean you really ought to check if your lease has between 70 and 90 years left. In particular once the remaining lease term slips under 80 years, the amount payable for any lease extension increases dramatically as an element of the premium you pay is what is known as a marriage value
It is conventional wisdom that a residential leasehold with over one hundred years unexpired lease term is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be equivalent in value to a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
Irrespective of whether you are a tenant or a landlord in Woodingdean,the lease extension lawyers that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their experience and the close ties they enjoy with Woodingdean valuers.
Oscar owned a 2 bedroom apartment in Woodingdean being marketed with a lease of a little over fifty eight years outstanding. Oscar on an informal basis approached his landlord a well known local-based freehold company for a lease extension. The landlord was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent to start with set at £100 per annum and increase every twenty five years thereafter. No ground rent would be due on a lease extension were Oscar to exercise his statutory right. Oscar procured expert advice and secured satisfactory deal informally and readily saleable.
Mr and Mrs. B Nguyen acquired a basement flat in Woodingdean in April 1999. We are asked if we could estimate the price would be for a ninety year extension to my lease. Comparable homes in Woodingdean with a long lease were worth £181,600. The mid-range ground rent payable was £55 invoiced yearly. The lease finished on 13 October 2078. Taking into account 52 years unexpired we approximated the compensation to the landlord for the lease extension to be within £30,400 and £35,200 not including costs.
Last Autumn we were contacted by Mr and Mrs. F Garcia , who bought a one bedroom flat in Woodingdean in July 2004. The dilemma was if we could approximate the price would be to extend the lease by 90 years. Comparable properties in Woodingdean with an extended lease were in the region of £290,000. The mid-range amount of ground rent was £45 billed every twelve months. The lease ran out in 2098. Considering the 72 years outstanding we approximated the premium to the landlord for the lease extension to be within £11,400 and £13,200 not including fees.