With a long leasehold premises in Woodstock, you are in fact renting it for a certain period of time. Modern flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than 80 years left. Leasehold owners in Woodstock with a lease drawing near to 81 years unexpired should seriously consider extending it sooner rather than later. When the lease term has less than 80 years left, under the relevant legislation the freeholder is entitled to calculate and charge a larger amount, based on a technical calculation, strangely termed as “marriage value” which is payable.
Leasehold residencies in Woodstock with more than one hundred years unexpired 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 purchasing the reversionary interest unless savings on ground rent and estate charges warrant it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Leeds Building Society | |
| National Westminster Bank | |
| TSB | |
| Royal Bank of Scotland |
The lawyers that we work with procure 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 conveyancer we work with provide it.
Half a year ago Sam, came very near to the 80-year threshold with the lease on his two bedroom flat in Woodstock. In buying his flat 19 years previously, the unexpired term was of no relevance. Thankfully, he became aware that he would imminently be paying an escalated premium for a lease extension. Sam arranged for a lease extension just under the wire in April. Sam and the freeholder in the end settled on an amount of £5,500 . If he not met the deadline, the premium would have increased by a minimum £875.
In 2011 we were approached by Mr B Simon who, having completed a purpose-built flat in Woodstock in April 2001. The question was if we could estimate the compensation to the landlord would likely be for a 90 year extension to my lease. Comparative properties in Woodstock with an extended lease were in the region of £243,000. The mid-range amount of ground rent was £65 billed per annum. The lease finished on 28 January 2089. Considering the 63 years left we approximated the compensation to the freeholder to extend the lease to be between £20,000 and £23,000 exclusive of legals.
Last September we were phoned by Mrs Rebecca Brooks , who completed a ground floor apartment in Woodstock in July 2002. We are asked if we could estimate the premium would be for a ninety year lease extension. Similar flats in Woodstock with a long lease were worth £181,600. The mid-range amount of ground rent was £55 collected every twelve months. The lease expired in 2078. Given that there were 52 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 not including expenses.