Woolavington leases on domestic properties are gradually losing value. if your lease has about 90 years remaining, you should start considering the need for a lease extension. Eighty years is a significant number: when the remaining term of a lease falls below this level then you start incurring an additional element called marriage value. Leasehold owners in Woolavington will mostly qualify for a lease extension; however It would be wise to check with a conveyancing solicitor to check if you qualify. In certain cases you may not qualify. There are also strict deadlines and procedures to comply with once the process is triggered so it’s prudent to be guided by a lawyer during the process.
Leasehold properties in Woolavington with over one hundred years outstanding 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 upside in buying the freehold unless savings on ground rent and estate charges merit it.
| Lender | Requirement |
|---|---|
| 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; |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Birmingham Midshires | 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you increased control over the value of your Woolavington leasehold, as your property will be more valuable and marketable in respect of lease length should you wish to sell. The lawyers that we work with have a in-depth market knowledge handling many hundreds of lease extensions or freehold purchase transactions.
Aaron owned a 2 bedroom flat in Woolavington on the market with a lease of a little over 61 years remaining. Aaron informally contacted his landlord being a well known local-based freehold company and enquired on a premium to extend the lease. The freeholder indicated a willingness to grant an extension taking the lease to 125 years on the basis of a new rent to start with set at £200 per annum and increase every twenty five years thereafter. No ground rent would be payable on a lease extension were Aaron to exercise his statutory right. Aaron procured expert legal guidance and was able to make an informed judgement and deal with the matter and readily saleable.
In 2010 we were phoned by Dr U Anderson who, having was assigned a lease of a ground floor apartment in Woolavington in September 2002. The question was if we could estimate the premium could be for a 90 year lease extension. Identical homes in Woolavington with 100 year plus lease were in the region of £191,000. The mid-range ground rent payable was £65 invoiced per annum. The lease ended in 2084. Given that there were 58 years unexpired we calculated the premium to the freeholder for the lease extension to be between £23,800 and £27,400 exclusive of legals.
Last month we were phoned by Dr W Mason , who owned a studio flat in Woolavington in October 1995. We are asked if we could shed any light on how much (roughly) price would likely be to prolong the lease by 90 years. Comparable properties in Woolavington with 100 year plus lease were in the region of £250,000. The mid-range amount of ground rent was £50 billed quarterly. The lease finished on 17 June 2095. Given that there were 69 years left we calculated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 not including fees.