The closer a residential lease in Woodley nears to zero years unexpired, the more it reduces the value of the property. If the residual term has, over 99 years to run then this decrease may be negligible however there will become a stage when a lease has under than 80 years unexpired as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the primary logic behind why you should extend the lease without delay. The majority of flat owners in Woodley will qualify for this right; nevertheless a lawyer will be able to confirm if you qualify for a lease extension. In certain situations you may not qualify, the most common reason being that you have owned the property for less than two years.
Leasehold premises in Woodley with over 100 years left on the lease are often referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such circumstances there is often little to be gained by buying the freehold unless savings on ground rent and estate charges justify it.
| 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. |
| 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. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
The conveyancers that we work with undertake 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 conveyancing solicitor we work with provide it.
Following protracted discussions with the freeholder of her garden apartment in Woodley, Jessica initiated the lease extension process just as the lease was coming close to the all-important eighty-year threshold. The transaction completed in June 2010. The landlord’s costs were kept to an absolute minimum.
Mrs I Bernard acquired a newly refurbished apartment in Woodley in February 2007. We are asked if we could shed any light on how much (approximately) premium would likely be to extend the lease by an additional years. Identical properties in Woodley with an extended lease were worth £242,600. The mid-range ground rent payable was £45 invoiced every twelve months. The lease expired on 5 June 2092. Having 67 years outstanding we estimated the compensation to the landlord to extend the lease to be between £11,400 and £13,200 not including professional charges.
Dr M Adams purchased a one bedroom flat in Woodley in March 2012. The dilemma was if we could approximate the price could be for a 90 year lease extension. Identical homes in Woodley with 100 year plus lease were in the region of £280,000. The mid-range ground rent payable was £55 invoiced quarterly. The lease concluded in 2103. Considering the 78 years unexpired we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus expenses.