As the the remaining lease term of a Woodthorpe domestic lease diminished so does its value and therefore the value of your property. Where the lease has, beyond one hundred years to run then this decrease may be of little impact nevertheless there will become a stage when a lease has fewer than 80 years remaining as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the primary reason why you should consider extending sooner rather than later. Most flat owners in Woodthorpe will qualify for this right; nevertheless a lawyer can confirm whether you are eligible to extend your lease. In limited situations you may not qualify, the most frequent reason being that you have not been the owner of the property for two years.
Leasehold properties in Woodthorpe with in excess of one hundred years remaining on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your premises. In such situations there is often little to be gained by buying the reversionary interest unless savings on ground rent and estate charges justify it.
| Lender | Requirement |
|---|---|
| Birmingham Midshires | Minimum 70 years from the date of the mortgage. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| 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. |
The conveyancing solicitors that we work with procure Woodthorpe lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The lawyer we work with provide it.
Off the back of unsuccessful discussions with the freeholder of her ground floor flat in Woodthorpe, Ashleigh initiated the lease extension process just as the lease was nearing the critical eighty-year deadline. The transaction was finalised in May 2008. The landlord’s charges were restricted to slightly above 500 pounds.
Dr A Clark took over the lease of a one bedroom flat in Woodthorpe in August 2009. We are asked if we could shed any light on how much (approximately) premium could be to prolong the lease by an additional years. Similar premises in Woodthorpe with a long lease were in the region of £246,800. The average amount of ground rent was £60 invoiced monthly. The lease ended in 2075. Given that there were 50 years unexpired we calculated the compensation to the landlord to extend the lease to be between £44,700 and £51,600 exclusive of fees.
Dr G Harris acquired a first floor apartment in Woodthorpe in August 2012. We are asked if we could approximate the price would likely be to prolong the lease by ninety years. Comparable properties in Woodthorpe with a long lease were in the region of £200,800. The mid-range amount of ground rent was £65 invoiced quarterly. The lease lapsed in 2085. Taking into account 60 years remaining we calculated the compensation to the landlord to extend the lease to be between £20,900 and £24,200 not including expenses.