Woodthorpe residential property held on a long lease is a depreciating asset because a leaseholder only owns the property for a period of years.
Leasehold properties in Woodthorpe with over one hundred years unexpired on the lease are often regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little to be gained by purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
Irrespective of whether you are a tenant or a landlord in Woodthorpe,the lease extension lawyers that we work with will always be prepared to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Woodthorpe valuers.
Last year Rory, came critically close to the 80-year mark with the lease on his first floor flat in Woodthorpe. Having bought his property two decades ago, the unexpired term was of minimal interest. by good luck, he became aware that he would imminently be paying way over the odds for a lease extension. Rory arranged for a lease extension just ahead of time in May. Rory and the freeholder eventually settled on sum of £5,000 . If the lease had gone lower than eighty years, the price would have increased by at least £1,150.
Dr Isabella Morris owned a basement flat in Woodthorpe in April 2003. We are asked if we could estimate the price would likely be for a 90 year lease extension. Similar premises in Woodthorpe with a long lease were valued around £250,000. The mid-range amount of ground rent was £50 collected annually. The lease concluded in 2094. Considering the 68 years outstanding we estimated the compensation to the landlord for the lease extension to be between £10,500 and £12,000 exclusive of costs.
Mr A Phillips owned a purpose-built apartment in Woodthorpe in September 1996. The question was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a 90 year lease extension. Identical residencies in Woodthorpe with an extended lease were worth £285,000. The mid-range ground rent payable was £55 invoiced per annum. The lease came to a finish on 27 January 2105. Taking into account 79 years remaining we approximated the premium to the landlord for the lease extension to be within £13,300 and £15,400 exclusive of legals.