Woodley leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start thinking about a lease extension. If lease term dips under eighty years, you will then have to pay half of the property's 'marriage value' in addition to the standard cost of the lease extension to the landlord. Marriage value is the amount of extra value that a lease extension will add to the property. Flat owners in Woodley will mostly be legally entitled to a lease extension; however it’s a good idea to check with a conveyancing solicitor to confirm if you qualify. In some circumstances you may not qualify. There are also strict deadlines and procedures to comply with once the process has started so it’s prudent to be guided by a conveyancer during the process.
Leasehold residencies in Woodley with more than one hundred years left on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. 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; |
| 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 | If the property is leasehold, the remaining unexpired lease term at the end of the new mortgage term must be at least 50 years where any part of the mortgage is on Interest Only and 30 years if all loan parts are on Capital Repayment and Interest. You must report the unexpired lease term to us and await our instructions if:
|
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Woodley can be a difficult process. We recommend you obtain professional help from a lawyer and surveyor 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 procuring Woodley lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Subsequent to unsuccessful discussions with the landlord of her leasehold flat in Woodley, Amber started the lease extension process just as the lease was coming close to the critical eighty-year mark. The legal work was concluded in August 2007. The freeholder’s fees were restricted to less than six hundred GBP.
In 2013 we were e-mailed by Mr and Mrs. Y François who, having was assigned a lease of a one bedroom flat in Woodley in May 2006. We are asked if we could approximate the price would be for a 90 year lease extension. Comparative properties in Woodley with 100 year plus lease were valued around £245,000. The average amount of ground rent was £50 collected every twelve months. The lease came to a finish in 2094. Taking into account 68 years left we calculated the premium to the landlord for the lease extension to be between £9,500 and £11,000 not including expenses.
Last Summer we were contacted by Ms V White , who bought a one bedroom apartment in Woodley in September 1997. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be for a ninety year extension to my lease. Similar properties in Woodley with 100 year plus lease were in the region of £285,000. The mid-range amount of ground rent was £55 billed monthly. The lease terminated in 2105. Taking into account 79 years unexpired we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of professional charges.