There is no doubt about it a leasehold flat or house in Woodstock is a wasting asset as a result of the shortening lease. If the residual term has, more than one hundred years remaining then this decrease may be fractional nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is known as a marriage value. This could be significant. It is the main logic behind why you should extend the lease without delay. Many flat owners in Woodstock will meet the qualifying criteria; nevertheless a lawyer will be able to confirm if you are eligible for a lease extension. In certain situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further 90 years added to all but the shortest lease, the premises will be worth the same as a freehold for decades to come.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The lawyers that we work with handle Woodstock 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.
Henry was the the leasehold owner of a 2 bedroom apartment in Woodstock on the market with a lease of fraction over 59 years left. Henry informally spoke with his freeholder a well known Bristol-based freehold company for a lease extension. The freeholder indicated a willingness to extend the lease to 125 years subject to a new rent initially set at £100 per annum and doubled every 25 years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Henry to exercise his statutory right. Henry procured expert advice and secured satisfactory deal without going to tribunal and sell the property.
Last Summer we were approach by Mrs Morgan Pérez , who bought a ground floor flat in Woodstock in April 2011. We are asked if we could shed any light on how much (roughly) premium would likely be for a ninety year lease extension. Comparable flats in Woodstock with a long lease were in the region of £280,000. The mid-range amount of ground rent was £45 collected annually. The lease terminated on 24 November 2096. Considering the 70 years remaining we approximated the premium to the landlord to extend the lease to be within £12,400 and £14,200 plus expenses.
Last Autumn we were called by Dr F Taylor , who was assigned a lease of a one bedroom flat in Woodstock in March 2006. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by ninety years. Similar residencies in Woodstock with an extended lease were valued around £223,400. The mid-range amount of ground rent was £60 billed annually. The lease came to a finish in 2085. Having 59 years outstanding we approximated the premium to the freeholder for the lease extension to be between £27,600 and £31,800 not including fees.