Woodstock leases on residential deteriorating in value. Where your lease has in the region of 90 years left, you should start thinking about a lease extension. 80 years is a significant number: when the unexpired term of a lease falls below this level then you start incurring 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 check if you qualify. In certain situations you may not be entitled. There are also strict deadlines and procedures to comply with once the process has commenced so it’s prudent to be guided by a conveyancer during the process.
Leasehold premises in Woodstock with in excess of 100 years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such circumstances there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
Using our service will provide you increased control over the value of your Woodstock leasehold, as your property will be more valuable and saleable in relation to the lease length should you wish to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Jude owned a 2 bedroom flat in Woodstock on the market with a lease of just over sixty years unexpired. Jude informally approached his freeholder a well known London-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to grant an extension taking the lease to 125 years on the basis of a rise in the rent to £125 per annum. No ground rent would be payable on a lease extension were Jude to invoke his statutory right. Jude obtained expert legal guidance and was able to make a more informed judgement and handle with the matter and readily saleable.
In 2010 we were contacted by Mr and Mrs. B White who, having moved into a studio apartment in Woodstock in September 2002. We are asked if we could shed any light on how much (approximately) price would likely be to prolong the lease by ninety years. Comparable flats in Woodstock with 100 year plus lease were in the region of £275,000. The mid-range amount of ground rent was £65 billed per annum. The lease terminated in 2093. Having 68 years remaining we estimated the compensation to the freeholder for the lease extension to be within £13,300 and £15,400 not including legals.
Mr and Mrs. K González moved into a first floor flat in Woodstock in March 2011. 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. Comparative flats in Woodstock with an extended lease were valued around £208,600. The average amount of ground rent was £60 collected annually. The lease ended in 2082. Given that there were 57 years as a residual term we estimated the compensation to the freeholder for the lease extension to be between £30,400 and £35,200 plus legals.