Woolacombe leases on domestic deteriorating in value. Where your lease has approximately ninety years left, you should start considering the need for a lease extension. If lease term is less than eighty years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Flat owners in Woolacombe will mostly be legally entitled to a lease extension; however a solicitor will confirm your eligibility. In some situations you may not qualify. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s best to be guided by a conveyancing solicitor during the process.
Leasehold premises in Woolacombe with in excess of one hundred 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 home. In such circumstances there is often little to be gained by purchasing the freehold 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| Santander | You must report the unexpired lease term to us and await our instructions if: 1. the unexpired term assumed by our valuer is between 55 and 82 years, but the actual unexpired term differs by more than one year (whether longer or shorter); or 2. the unexpired term assumed by our valuer is more than 82 years but the actual unexpired term is less than 82 years; or 3. no valuation report is provided However, we will not accept a lease where on expiry of the mortgage: (i) less than 50 years remain and all or part of the loan is repaid on an interest-only basis: or (ii) less than 30 years remain and the loan is repaid on a capital and interest basis We will accept a lease that has been extended under the provisions of the Leasehold Reform Act 1993 provided statutory compensation would be available to the leaseholder. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
| 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. |
Engaging our service will provide you better control over the value of your Woolacombe leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
After protracted negotiations with the freeholder of her studio flat in Woolacombe, Alicia started the lease extension process just as her lease was coming close to the critical eighty-year deadline. The transaction was finalised in August 2012. The landlord’s fees were restricted to a tad over 650 pounds.
Mr O Mason purchased a one bedroom apartment in Woolacombe in February 2006. The dilemma was if we could shed any light on how much (approximately) compensation to the landlord would likely be for a ninety year lease extension. Similar homes in Woolacombe with 100 year plus lease were worth £295,000. The mid-range ground rent payable was £45 collected quarterly. The lease finished on 2 November 2099. Given that there were 74 years left we approximated the compensation to the landlord for the lease extension to be between £8,600 and £9,800 not including costs.
Dr S Laurent was assigned a lease of a one bedroom apartment in Woolacombe in September 1997. 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. Comparative flats in Woolacombe with a long lease were in the region of £243,000. The average ground rent payable was £65 invoiced every twelve months. The lease expiry date was on 15 September 2088. Taking into account 63 years unexpired we estimated the premium to the landlord to extend the lease to be within £20,000 and £23,000 plus legals.