Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. This lease will normally be granted for a fixed period of time , ordinarily 99 or 125 years, although we have come across longer and shorter terms in Woodley. Clearly, the length of lease remaining reduces over time. This is often ignored and only becomes a problem when the residence needs to be sold or refinanced. The fewer the years remaining the less it is worth and the more it will cost to extend the lease. Eligible long lease owners in Woodley have the legal entitlement to extend the lease for an additional 90 years in accordance with legislation. You should give due deliberation before putting off your Woodley lease extension. Putting off that expense now simply increases the price you will eventually have to pay for a lease extension
It is generally accepted that a residential leasehold with over 100 years remaining is worth roughly the same as a freehold. Where an additional 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with handle Woodley lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Subsequent to protracted correspondence with the freeholder of her basement apartment in Woodley, Chantelle commenced the lease extension process as the 80 year threshold was quickly nearing. The lease extension was finalised in October 2009. The landlord’s costs were restricted to approximately 500 GBP.
In 2014 we were e-mailed by Mr and Mrs. D Smith who, having took over the lease of a garden apartment in Woodley in March 2009. We are asked if we could approximate the compensation to the landlord could be for a ninety year extension to my lease. Comparable residencies in Woodley with an extended lease were valued about £250,000. The mid-range ground rent payable was £50 invoiced per annum. The lease terminated on 20 August 2093. Having 68 years outstanding we approximated the premium to the landlord to extend the lease to be within £10,500 and £12,000 plus legals.
Last Christmas we were contacted by Dr N Morris , who acquired a newly refurbished flat in Woodley in March 2000. The question was if we could estimate the premium would be for a ninety year lease extension. Identical homes in Woodley with an extended lease were worth £285,000. The average amount of ground rent was £55 billed annually. The lease finished on 17 July 2104. Taking into account 79 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £13,300 and £15,400 exclusive of fees.