Unfortunately that a Woolavington residential lease is a wasting asset. The lease value drops in proportion to its lease length. The extent of this is not fully appreciated in the early years due to the loss of value being disguised by increases in the Woolavington property prices.Once your lease gets to 85ish years, you need to start considering a lease extension. If the number of years remaining dips below eighty years, you will then be required to pay 50% of the property's 'marriage value' on top of the usual cost of the lease extension to the landlord. Marriage value is the amount of additional value that a lease extension will add the property The majority of leasehold owners in Woolavington will be able to extend under the legislation; however a lawyer will be able to confirm if you qualify for an extension. In some situations you may not be entitled. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor throughout the process.
Leasehold properties in Woolavington with over one hundred years remaining on the lease are often referred to as ‘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 merit it.
| Lender | Requirement |
|---|---|
| Accord Mortgages | |
| Bank of Scotland | |
| Coventry Building Society | |
| Halifax | |
| Royal Bank of Scotland |
Regardless of whether you are a tenant or a freeholder in Woolavington,the lease extension solicitors 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 Woolavington valuers.
14 months ago Elijah, started to get close to the eighty-year mark with the lease on his two bedroom apartment in Woolavington. In buying his home twenty years ago, the lease term was of minimal importance. Thankfully, he became aware that he needed to take action soon on a lease extension. Elijah arranged for a lease extension just under the wire last August. Elijah and the landlord ultimately settled on the final figure of £5,500 . If the lease had slid below 80 years, the premium would have become more exhorbitant by at least £875.
Mrs Alexandra Davies took over the lease of a one bedroom apartment in Woolavington in July 2012. We are asked if we could approximate the premium would likely be for a 90 year lease extension. Comparative flats in Woolavington with an extended lease were valued about £227,800. The average amount of ground rent was £45 billed quarterly. The lease concluded on 6 March 2091. Having 65 years outstanding we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including expenses.
Mrs Freya Edwards purchased a studio flat in Woolavington in July 1999. We are asked if we could shed any light on how much (roughly) compensation to the landlord would be for a 90 year extension to my lease. Similar premises in Woolavington with an extended lease were worth £275,000. The average ground rent payable was £55 billed yearly. The lease came to a finish in 2102. Taking into account 76 years remaining we calculated the compensation to the freeholder to extend the lease to be within £9,500 and £11,000 exclusive of expenses.