Woodstock leases on domestic properties are gradually losing value. Where your lease has about 90 years remaining, you should start thinking about a lease extension. Eighty years is a significant number: when the unexpired term of a lease dips below this level then you start paying an additional element called marriage value. Leasehold owners in Woodstock will mostly be legally entitled to a lease extension; however a solicitor should be able confirm if you qualify. In some circumstances you may not be entitled. There are prescribed timetables and steps to comply with once the process has started so it’s sensible to be guided by a lawyer during the process.
Leasehold residencies in Woodstock with in excess of 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 buying the reversionary interest unless savings on ground rent and maintenance charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| 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. |
Retaining our service gives you increased control over the value of your Woodstock leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Ben was the the leasehold owner of a conversion flat in Woodstock being sold with a lease of fraction over 72 years remaining. Ben on an informal basis approached his freeholder a well known local-based freehold company for a lease extension. The landlord was prepared to give an extension on non-statutory terms taking the lease to 125 years on the basis of a new rent initially set at £100 per annum and increase every 25 years thereafter. No ground rent would be due on a lease extension were Ben to exercise his statutory right. Ben procured expert advice and secured an acceptable resolution without going to tribunal and ending up with a market value flat.
Dr Finley Hill completed a ground floor apartment in Woodstock in April 2000. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Comparable premises in Woodstock with 100 year plus lease were valued around £174,200. The average ground rent payable was £55 collected every twelve months. The lease elapsed in 2077. Taking into account 51 years remaining we estimated the compensation to the landlord for the lease extension to be within £31,400 and £36,200 plus fees.
Ms G González took over the lease of a newly refurbished flat in Woodstock in July 2004. We are asked if we could shed any light on how much (approximately) compensation to the landlord would be to prolong the lease by an additional years. Similar homes in Woodstock with a long lease were worth £285,000. The average amount of ground rent was £45 invoiced quarterly. The lease terminated in 2097. Given that there were 71 years outstanding we estimated the compensation to the landlord to extend the lease to be between £12,400 and £14,200 not including costs.