For anyone whose Woodside property is held on a long lease, the message is clear – if nothing is done, your property will eventually revert to your landlord, leaving you empty-handed. The shorter the lease the lower the value of the property and the more it will cost to procure a lease extension.
Leasehold residencies in Woodside with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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 |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Woodside 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 lawyer we work with provide it.
During the course of the last few months Oliver, started to get near to the 80-year mark with the lease on his studio apartment in Woodside. In buying his home 18 years previously, the unexpired term was of minimal relevance. Fortunately, he realised he would soon be paying an inflated amount for a lease extension. Oliver extended the lease just ahead of time last May. Oliver and the landlord in the end settled on a premium of £5,000 . If the lease had dipped to less than eighty years, the premium would have gone up by a minimum £925.
Last month we were phoned by Dr Charlotte Reed , who moved into a first floor flat in Woodside in October 2009. The dilemma was if we could estimate the premium could be to extend the lease by 90 years. Identical homes in Woodside with 100 year plus lease were valued about £285,000. The average ground rent payable was £55 collected quarterly. The lease concluded on 16 July 2105. Having 79 years left we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of fees.
An example of a Lease Extension case for a Woodside residence 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 affected 1 flat. The number of years remaining on the existing lease(s) was 69.46 years.