With a long leasehold premises in Woodley, you are actually buying a right to reside in a property for a set period of time. Modern flat leases are usually granted for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease gets disproportionately greater notably when there are less than 80 years left. Leasehold owners in Woodley with a lease nearing 81 years remaining should seriously think of extending it sooner than later. When a lease has below 80 years remaining, under the relevant legislation the freeholder is entitled to calculate and levy a larger premium, based on a technical computation, known as “marriage value” which is payable.
It is conventional wisdom that a property with more than 100 years remaining is worth approximately the equivalent as a freehold. Where an further ninety years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Lease extensions in Woodley can be a difficult process. We recommend you procure professional help from a conveyancing solicitor and valuer with experience in lease extensions.
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 a wealth of experience dealing with Woodley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Following unsuccessful correspondence with the freeholder of her first floor apartment in Woodley, Isobel initiated the lease extension process just as the lease was coming close to the critical eighty-year mark. The transaction was concluded in September 2013. The landlord’s costs were kept to an absolute minimum.
Last January we were e-mailed by Mr and Mrs. V Torres , who acquired a one bedroom flat in Woodley in September 1997. We are asked if we could estimate the price would likely be for a ninety year lease extension. Comparative properties in Woodley with a long lease were in the region of £225,400. The mid-range amount of ground rent was £45 invoiced every twelve months. The lease expired on 5 August 2089. Considering the 64 years remaining we approximated the compensation to the freeholder to extend the lease to be within £15,200 and £17,600 exclusive of expenses.
Last month we were approach by Mr Charlie Fournier , who purchased a studio apartment in Woodley in August 1995. The dilemma was if we could shed any light on how much (approximately) premium would likely be to prolong the lease by a further 90 years. Comparable properties in Woodley with a long lease were valued around £270,000. The mid-range ground rent payable was £55 collected per annum. The lease expired on 13 March 2100. Considering the 75 years outstanding we calculated the compensation to the landlord to extend the lease to be within £9,500 and £11,000 plus professional charges.