When it comes to residential leasehold premises in Woodside, you are in fact renting it for a certain period of time. In recent years flat leases typically tend to be for 99 years or 125. Even though this may appear like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease gets disproportionately more expensive particularly when there are fewer than eighty years remaining. Leasehold owners in Woodside with a lease drawing near to 81 years unexpired should seriously consider extending it as soon as possible. When a lease has below eighty years left, under the relevant statute the landlord is entitled to calculate and levy a greater premium, based on a technical computation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a property with over one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be equivalent in value to a freehold for many years in the future.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| 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. |
| 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 |
Retaining our service gives you enhanced control over the value of your Woodside leasehold, as your property will be more valuable and marketable in terms of lease length should you wish to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
John was the the leasehold owner of a 2 bedroom apartment in Woodside being sold with a lease of just over 59 years unexpired. John on an informal basis spoke with his freeholder being a well known Manchester-based freehold company for a lease extension. The freeholder was keen to agree an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 annually. No ground rent would be due on a lease extension were John to exercise his statutory right. John obtained expert advice and was able to make a more informed decision and handle with the matter and readily saleable.
In 2012 we were e-mailed by Mrs Jasmine Evans who, having completed a first floor flat in Woodside in March 2008. The question was if we could estimate the compensation to the landlord could be to prolong the lease by 90 years. Comparable properties in Woodside with an extended lease were worth £208,200. The average amount of ground rent was £65 invoiced quarterly. The lease ran out in 2086. Taking into account 61 years outstanding we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 exclusive of fees.
An example of a Lease Extension matter before the tribunal 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 unexpired residue of the current lease was 69.46 years.