Woodthorpe 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 your lease becomes more expensive. Most owners of residential leasehold property in Woodthorpe enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Woodthorpe you should investigate if your lease has between 70 and 90 years remaining. In particular once the remaining lease term slips under eighty years, the compensation to the landlord for any lease extension sharply increases as part of the premium you will incur is what is known as a marriage value
Leasehold properties in Woodthorpe with in excess of one hundred years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease is worth the same as a freehold interest in your property. In such situations there is often little to be gained by purchasing the reversionary interest unless savings on ground rent and estate 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. |
| 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 |
| 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. |
Regardless of whether you are a tenant or a landlord in Woodthorpe,the lease extension lawyers that we work with will always be willing 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.
Off the back of unsuccessful correspondence with the freeholder of her leasehold apartment in Woodthorpe, Bethan started the lease extension process as the eighty year threshold was swiftly nearing. The legal work was concluded in June 2008. The landlord’s fees were kept to an absolute minimum.
Last month we were phoned by Mr A Jackson , who bought a garden flat in Woodthorpe in August 2004. The question was if we could shed any light on how much (roughly) price would be to prolong the lease by ninety years. Comparative flats in Woodthorpe with a long lease were worth £280,000. The mid-range amount of ground rent was £55 billed per annum. The lease termination date was in 2103. Considering the 78 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 plus fees.
Dr M Brooks purchased a purpose-built flat in Woodthorpe in June 1995. We are asked if we could approximate the price could be for a 90 year lease extension. Similar flats in Woodthorpe with an extended lease were valued about £186,000. The average ground rent payable was £65 billed quarterly. The lease lapsed in 2083. Taking into account 58 years remaining we approximated the compensation to the freeholder for the lease extension to be between £24,700 and £28,600 not including fees.