Owning a flat usually means owning a lease of the property, this is a ‘time-limited’ interest becoming shorter every day. your lease will usually be granted for a set period of time , ordinarily 99 or 125 years, although we have seen longer and shorter terms in Woodstock. Inevitably, the length of lease remaining reduces over time. This may slip by relatively unnoticed when the residence has to be disposed of or refinanced. The shorter the lease the lower the value of the property and the more expensive it will be to procure a lease extension. Eligible leaseholders in Woodstock have the legal entitlement to extend the lease for an additional 90 years in accordance with statute. Do give careful consideration before delaying your Woodstock lease extension. Putting off that expense now simply increases the price you will eventually incur for a lease extension
Leasehold properties in Woodstock with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your property. In such circumstances there is often little to be gained by buying the reversionary interest unless savings on ground rent and service charges warrant it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Godiva Mortgages | 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. |
| Yorkshire 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. |
Lease extensions in Woodstock can be a difficult process. We recommend you get guidance from a lawyer and valuer with experience in lease extensions.
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.
Benjamin was the the leasehold proprietor of a studio flat in Woodstock on the market with a lease of a little over fifty eight years left. Benjamin informally spoke with his freeholder being a well known London-based freehold company for a lease extension. The freeholder indicated a willingness to grant an extension taking the lease to 125 years subject to a rise in the rent to £200 annually. No ground rent would be payable on a lease extension were Benjamin to exercise his statutory right. Benjamin obtained expert advice and secured an acceptable resolution informally and ending up with a market value flat.
In 2012 we were called by Mr and Mrs. F Kelly who, having completed a basement apartment in Woodstock in October 1999. The question was if we could estimate the premium could be for a ninety year lease extension. Similar homes in Woodstock with a long lease were valued around £210,000. The mid-range ground rent payable was £50 collected yearly. The lease end date was in 2105. Taking into account 80 years outstanding we estimated the premium to the freeholder to extend the lease to be between £8,600 and £9,800 exclusive of professional charges.
Ms Lydia André purchased a one bedroom apartment in Woodstock in August 2009. We are asked if we could approximate the price would likely be for a 90 year lease extension. Similar properties in Woodstock with a long lease were in the region of £275,000. The average ground rent payable was £45 collected annually. The lease expired in 2094. Given that there were 69 years unexpired we calculated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 not including fees.