Woodstock leases on residential properties are gradually decreasing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Legislation has been in place for sometime now which permits qualifying Woodstock residential leaseholders to extend the terms of long leases. If you are a leasehold owner in Woodstock you really ought to investigate if your lease has between seventy and 90 years remaining. There are compelling reasons why a Woodstock flat owner with a lease having around 80 years unexpired should take action to ensure that a lease extension is effected without delay
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the same as a freehold. Where an additional 90 years added to any lease with more than 30 years remaining, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 30 years plus the term of the mortgage at the outset 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 |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Engaging our service will provide you increased control over the value of your Woodstock leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Tyler owned a conversion apartment in Woodstock being sold with a lease of a little over 61 years outstanding. Tyler on an informal basis approached his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £200 annually. Ordinarily, ground rent would not be due on a lease extension were Tyler to invoke his statutory right. Tyler procured expert advice and secured an acceptable resolution informally and ending up with a market value flat.
Dr Leon Moreau moved into a one bedroom apartment in Woodstock in April 1996. We are asked if we could shed any light on how much (approximately) price could be to prolong the lease by ninety years. Comparative homes in Woodstock with a long lease were valued around £206,200. The mid-range amount of ground rent was £55 collected every twelve months. The lease expired in 2082. Taking into account 56 years outstanding we approximated the premium to the freeholder to extend the lease to be between £31,400 and £36,200 plus legals.
In 2012 we were e-mailed by Mr and Mrs. J Alexander who, having acquired a purpose-built flat in Woodstock in July 1998. The dilemma was if we could approximate the compensation to the landlord would be to prolong the lease by ninety years. Identical residencies in Woodstock with 100 year plus lease were worth £300,000. The average ground rent payable was £50 collected annually. The lease concluded in 2102. Taking into account 76 years outstanding we estimated the premium to the freeholder to extend the lease to be within £8,600 and £9,800 plus expenses.