Owning a apartment usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. The lease will normally be granted for a fixed period of time , usually 99 or 125 years, although we have seen longer and shorter terms in Woodstock. Clearly, the term of lease left reduces over time. This is often ignored and only becomes a problem when the flat or house has to be disposed of or re-mortgaged. The shorter the lease the lower the value of the property and the more expensive it will be to obtain a lease extension. Qualifying leaseholders in Woodstock have the legal entitlement to extend the lease for a further ninety years under statute. Please give careful attention before delaying your Woodstock lease extension. Putting off that expense now only increases the price you will ultimately incur for a lease extension
Leasehold properties in Woodstock with more than 100 years left on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such circumstances there is often little upside in purchasing the freehold unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| 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. |
| 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 |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Woodstock can be a difficult process. We recommend you secure professional help from a conveyancing solicitor and surveyor with experience in this area.
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 in-depth market knowledge procuring Woodstock lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Last October Isaac, came perilously near to the 80-year mark with the lease on his garden flat in Woodstock. In buying his flat 19 years previously, the lease term was of minimal bearing. As luck would have it, he became aware that he would soon be paying an inflated amount for Extending the lease. Isaac was able to extend his lease just under the wire last July. Isaac and the freeholder via the management company subsequently agreed on an amount of £5,500 . If the lease had dropped to less than 80 years, the figure would have increased by at least £1,100.
Last Spring we were phoned by Ms Ella Patel , who acquired a studio apartment in Woodstock in October 2008. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be to prolong the lease by an additional years. Identical flats in Woodstock with a long lease were worth £257,800. The average amount of ground rent was £65 collected every twelve months. The lease ran out on 20 January 2090. Taking into account 65 years outstanding we calculated the compensation to the freeholder for the lease extension to be between £17,100 and £19,800 plus fees.
Mr and Mrs. J Morris took over the lease of a one bedroom apartment in Woodstock in July 2012. The dilemma was if we could shed any light on how much (roughly) premium would be to extend the lease by 90 years. Similar properties in Woodstock with an extended lease were worth £191,400. The mid-range amount of ground rent was £55 billed monthly. The lease terminated on 20 January 2079. Taking into account 54 years left we approximated the compensation to the freeholder to extend the lease to be within £34,200 and £39,600 exclusive of expenses.