The rule of thumb is, all other factors being equal, the shorter the lease the more expensive the premium. Qualifying leaseholders in Woolacombe have the legal entitlement to extend the lease for a further ninety years under Leasehold Reform legislation. Please give careful consideration before delaying your Woolacombe lease extension. Postponing that expense now simply escalates the price you will ultimately have to pay for a lease extension.
Leasehold premises in Woolacombe with over one hundred years unexpired 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 purchasing the reversionary interest 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. |
| 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
Retaining our service gives you better control over the value of your Woolacombe leasehold, as your property will be more valuable and marketable in respect of lease length should you decide to sell. The conveyancers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Off the back of unsuccessful discussions with the freeholder of her basement apartment in Woolacombe, Freya started the lease extension process just as the lease was approaching the critical eighty-year threshold. The transaction was concluded in August 2007. The freeholder’s fees were restricted to a tad over 550 pounds.
Last Autumn we were called by Dr Aimee Díaz , who owned a purpose-built flat in Woolacombe in February 1996. We are asked if we could estimate the compensation to the landlord could be to extend the lease by 90 years. Comparable flats in Woolacombe with 100 year plus lease were worth £205,000. The mid-range amount of ground rent was £50 collected annually. The lease finished in 2103. Considering the 78 years left we calculated the premium to the landlord to extend the lease to be within £8,600 and £9,800 plus fees.
Last Winter we were e-mailed by Dr S Morgan , who moved into a ground floor flat in Woolacombe in October 2003. The dilemma was if we could approximate the premium could be to prolong the lease by an additional years. Identical premises in Woolacombe with an extended lease were valued around £267,600. The mid-range ground rent payable was £65 collected per annum. The lease came to a finish in 2092. Considering the 67 years remaining we approximated the premium to the freeholder to extend the lease to be within £14,300 and £16,400 not including fees.