With a residential leasehold premises in Woodside, you are actually buying an entitlement to reside in a property for a prescribed time frame. In recent years 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 may think about extending the lease sooner as opposed to later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly notably once there are fewer than 80 years left. Leasehold owners in Woodside with a lease drawing near to 81 years unexpired should seriously think of extending it sooner than later. Once the lease term has under eighty years left, under the current legislation the freeholder can calculate and levy a greater amount, based on a technical computation, known as “marriage value” which is payable.
Leasehold properties in Woodside with in excess of one hundred years outstanding 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 service 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. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| Halifax | Minimum 70 years from the date 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 |
Using our service will provide you increased control over the value of your Woodside leasehold, as your property will be more valuable and saleable in terms of lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Last year Freddie, came precariously close to the eighty-year threshold with the lease on his two bedroom flat in Woodside. Having bought his property two decades ago, the lease term was of little significance. As luck would have it, he noticed he needed to take action soon on a lease extension. Freddie was able to extend his lease at the eleventh hour in August. Freddie and the landlord who owned the flat above in the end settled on the final figure of £5,500 . If he failed to meet the deadline, the amount would have escalated by at least £1,125.
In 2014 we were e-mailed by Mrs Lauren Bailey who, having bought a ground floor flat in Woodside in October 2010. We are asked if we could approximate the price would likely be to prolong the lease by 90 years. Comparative residencies in Woodside with an extended lease were valued about £227,800. The mid-range ground rent payable was £45 invoiced monthly. The lease ran out on 16 February 2090. Considering the 65 years remaining we estimated the compensation to the landlord to extend the lease to be within £13,300 and £15,400 exclusive of expenses.
An example of a Lease Extension decision for a Woodside flat is Ground Floor Flat 14 Lodge Road in October 2013. the tribunal held that the price payable for the acquisition of the extended lease of the property should be £12,590 .00 This case related to 1 flat. The remaining number of years on the lease was 69.46 years.