With a residential leasehold premises in Woolacombe, you are actually purchasing an entitlement to live in a property for a set period of time. In recent years flat leases are usually granted for 99 years or 125. Even though this may appear like a lengthy period of time, you may think about a lease extension sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly particularly once there are less than eighty years left. Anyone in Woolacombe with a lease nearing 81 years left should seriously consider extending it as soon as possible. When the lease term has under 80 years left, under the current legislation the freeholder is entitled to calculate and levy a larger amount, assessed on a technical multiplication, strangely termed as “marriage value” which is payable.
Leasehold properties in Woolacombe with in excess of 100 years remaining 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and estate charges warrant 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| 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 conveyancers that we work with procure Woolacombe 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 lengthy correspondence with the landlord of her ground floor apartment in Woolacombe, Jasmine started the lease extension process as the 80 year threshold was fast advancing. The legal work was concluded in May 2005. The landlord’s fees were negotiated to less than 550 pounds.
Last month we were phoned by Mrs Jordan King , who owned a basement apartment in Woolacombe in May 2012. The question was if we could shed any light on how much (approximately) price would likely be for a 90 year extension to my lease. Similar residencies in Woolacombe with an extended lease were worth £233,200. The mid-range ground rent payable was £60 billed monthly. The lease termination date was on 24 August 2087. Considering the 61 years unexpired we approximated the compensation to the freeholder for the lease extension to be within £22,800 and £26,400 plus costs.
In 2013 we were approached by Mr Aiden Kelly who, having purchased a studio apartment in Woolacombe in January 1996. The question was if we could approximate the compensation to the landlord would likely be to extend the lease by a further 90 years. Comparative properties in Woolacombe with an extended lease were valued around £171,800. The mid-range ground rent payable was £55 invoiced per annum. The lease lapsed on 3 March 2076. Considering the 50 years unexpired we calculated the compensation to the landlord to extend the lease to be between £33,300 and £38,400 plus expenses.