There is no doubt about it a leasehold property in Woodingdean is a wasting asset as a result of the diminishing lease term. Where the lease has, in excess of 125 years remaining then this decrease may be fractional however there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could be significant. It is the primary reason why you should extend the lease without delay. Most flat owners in Woodingdean will qualify for this right; however a conveyancing solicitor can confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most frequent reason being that you have owned the property for under two years.
It is generally accepted that a property with more than one hundred years unexpired lease term is worth approximately the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the property will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Irrespective of whether you are a tenant or a freeholder in Woodingdean,the lease extension solicitors 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.
Zachary was the the leasehold proprietor of a 2 bedroom flat in Woodingdean being marketed with a lease of just over 59 years remaining. Zachary informally spoke with his freeholder being a well known London-based freehold company and enquired on a premium to extend the lease. The landlord was prepared to agree an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent at the outset set at £100 per annum and increase every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Zachary to invoke his statutory right. Zachary procured expert advice and was able to make a more informed decision and handle with the matter and ending up with a market value flat.
Dr Y López acquired a purpose-built flat in Woodingdean in November 2008. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord could be to prolong the lease by ninety years. Comparable premises in Woodingdean with 100 year plus lease were in the region of £198,800. The mid-range ground rent payable was £55 collected per annum. The lease lapsed on 11 February 2080. Considering the 55 years as a residual term we estimated the compensation to the landlord for the lease extension to be between £33,300 and £38,400 plus expenses.
In 2013 we were phoned by Mr Lewis Wright who, having was assigned a lease of a one bedroom flat in Woodingdean in May 2003. We are asked if we could estimate the price could be for a 90 year lease extension. Comparable properties in Woodingdean with 100 year plus lease were worth £300,000. The average ground rent payable was £50 invoiced monthly. The lease came to a finish on 17 July 2100. Taking into account 75 years outstanding we calculated the premium to the landlord for the lease extension to be within £9,500 and £11,000 not including costs.