When it comes to domestic leasehold property in Woolavington, you effectively rent it for a certain period of time. These days flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a lengthy period of time, you should consider extending the lease sooner as opposed to later. Accepted thinking is that the shorter the lease is the cost of extending the lease increases markedly notably when there are fewer than eighty years remaining. Leasehold owners in Woolavington with a lease approaching 81 years remaining should seriously consider extending it without delay. When a lease has under eighty years left, under the relevant Act the freeholder is entitled to calculate and charge a greater premium, assessed on a technical calculation, known as “marriage value” which is due.
Leasehold properties in Woolavington with more than 100 years unexpired 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 home. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage are not acceptable. Leases with fewer than 70 years should only be referred to the issuing office where the following scenario applies, as discretion may be applied subject to bank approval: • Property is located in any of the following prestigious developments: Cadogan, Crown, Grosvenor, Howard de Walden, Portman or Wellcome Trust Estates in Central London AND • The value of the property subject to the short remaining term is £500,000 or more AND • The loan to value does not exceed 90% for purchases, 90% like for like re-mortgages, 80% for re-mortgages with any element of capital raising and 80% for existing Barclays mortgage borrowers applying for additional borrowing; |
| Halifax | Minimum 70 years from the date of the mortgage. |
| 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. |
Regardless of whether you are a tenant or a landlord in Woolavington,the lease extension solicitors that we work with will always be happy to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Woolavington valuers.
Gabriel was the the leasehold proprietor of a high value apartment in Woolavington on the market with a lease of a little over 61 years unexpired. Gabriel informally approached his landlord being a well known London-based freehold company for a lease extension. The freeholder was prepared to agree an extension on non-statutory terms taking the lease to 125 years subject to a rise in the rent to £100 per annum. Ordinarily, ground rent would not be due on a lease extension were Gabriel to exercise his statutory right. Gabriel procured expert legal guidance and was able to make a more informed judgement and deal with the matter and ending up with a market value flat.
In 2012 we were called by Mr and Mrs. D Mercier who, having bought a newly refurbished flat in Woolavington in June 1998. The dilemma was if we could shed any light on how much (approximately) price would be to extend the lease by 90 years. Comparable properties in Woolavington with a long lease were valued around £255,000. The average ground rent payable was £50 invoiced annually. The lease lapsed on 9 February 2096. Having 70 years as a residual term we calculated the compensation to the landlord to extend the lease to be between £10,500 and £12,000 exclusive of costs.
Mr and Mrs. M Leroy bought a basement flat in Woolavington in August 2011. We are asked if we could shed any light on how much (roughly) compensation to the landlord would likely be to extend the lease by 90 years. Comparative properties in Woolavington with 100 year plus lease were valued about £246,800. The mid-range amount of ground rent was £60 invoiced yearly. The lease terminated on 7 September 2076. Considering the 50 years as a residual term we estimated the premium to the freeholder to extend the lease to be within £44,700 and £51,600 not including legals.