The market value of a leasehold property in Woodstock is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should foresee problems on re-sale, so it is recommended to arrange for a lease extension prior to purchasing. Ideally one should start the process of extending the lease is when the lease still has 82 years unexpired so that formalities can be concluded ahead of the eighty year cut off point. Current legislation enables Woodstock qualifying lessees to acquire a lease extension of ninety years in addition to the remaining lease term at a peppercorn rent (that is, rent free). The intention of the valuation is to determine the sum payable by the lessee to the freeholder for the purchase of the lease extension.
Leasehold properties in Woodstock with in excess of one hundred years remaining on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Barclays plc | |
| Santander | |
| Skipton Building Society | |
| TSB | |
| The Mortgage Works |
The conveyancing solicitors 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 conveyancer we work with provide it.
Subsequent to lengthy discussions with the freeholder of her one bedroom flat in Woodstock, Emma commenced the lease extension process as the eighty year threshold was fast advancing. The legal work was finalised in November 2006. The freeholder’s costs were restricted to slightly above 600 pounds.
Ms T Roux took over the lease of a first floor flat in Woodstock in September 2001. The dilemma was if we could approximate the compensation to the landlord would likely be for a 90 year extension to my lease. Similar premises in Woodstock with a long lease were worth £295,000. The mid-range ground rent payable was £50 billed quarterly. The lease lapsed on 16 May 2101. Given that there were 75 years unexpired we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 plus professional charges.
Last Autumn we were phoned by Mr and Mrs. N Campbell , who took over the lease of a purpose-built apartment in Woodstock in May 2000. The dilemma was if we could approximate the compensation to the landlord would be to extend the lease by an additional years. Comparative premises in Woodstock with a long lease were in the region of £250,400. The mid-range ground rent payable was £65 collected annually. The lease came to a finish in 2090. Having 64 years outstanding we estimated the premium to the freeholder to extend the lease to be within £19,000 and £22,000 exclusive of legals.