The re-sale value of a leasehold property in Woodingdean is impacted by how many years the lease has left to run. If it is close to or less than eighty years you should envisage problems on re-sale, so it is recommended to arrange for a lease extension prior to buying. It is preferable to start the lease extension process when the lease still has 82 years remaining so that a lease extension can be addressed prior to the eighty year mark. Statute enables Woodingdean qualifying lessees to obtain a lease extension of ninety years in addition to the remaining length of the lease at a peppercorn rent (that is, rent free). The purpose of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is generally accepted that a property with more than 100 years remaining is worth approximately the same as a freehold. Where an further ninety years added to any lease with more than 45 years unexpired, the premises 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; |
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
Lease extensions in Woodingdean can be a difficult process. We recommend you get professional help from a conveyancing solicitor and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Woodingdean lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
During the course of the last few months John, came perilously close to the eighty-year threshold with the lease on his ground floor flat in Woodingdean. In buying his flat 19 years ago, the length of the lease was of no relevance. As luck would have it, he realised he needed to take steps soon on a lease extension. John extended the lease just in the nick of time in August. John and the freeholder via the management company in the end agreed on a premium of £6,000 . If the lease had gone lower than 80 years, the figure would have become more exhorbitant by at least £875.
Dr Zoe Mercier completed a ground floor flat in Woodingdean in August 2010. We are asked if we could shed any light on how much (roughly) price could be for a ninety year lease extension. Comparative homes in Woodingdean with a long lease were worth £240,600. The average ground rent payable was £60 invoiced annually. The lease ran out on 13 May 2087. Given that there were 62 years unexpired we calculated the compensation to the landlord to extend the lease to be within £21,900 and £25,200 exclusive of costs.
In 2013 we were approached by Mr N Walker who, having was assigned a lease of a garden flat in Woodingdean in June 2007. We are asked if we could estimate the compensation to the landlord could be to extend the lease by an additional years. Comparative homes in Woodingdean with 100 year plus lease were worth £174,200. The average amount of ground rent was £55 invoiced quarterly. The lease ended in 2076. Taking into account 51 years outstanding we approximated the compensation to the freeholder for the lease extension to be within £31,400 and £36,200 not including professional charges.