Unfortunately that a Woolavington residential lease is a wasting asset. As the lease term reduces so does the value of the property. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Woolavington property prices.Once your lease nears 85ish years, you should start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease slips below 80 years - otherwise a higher amount will be due. Most flat owners in Woolavington will be able to extend under the legislation; however a conveyancing solicitor will be able to clarify if you qualify for an extension. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process has commenced and you will need to be guided by your conveyancer for the duration of the process.
It is generally accepted that a property with in excess of one hundred years unexpired lease term is worth roughly the same as a freehold. Where an further 90 years added to any lease with more than 35 years unexpired, the property will be equivalent in value to a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Accord Mortgages | 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. |
| Barclays plc | Leases with less than 70 years at the commencement of the mortgage should be declined (see exception below). Leases with greater than 70 years but fewer than 85 years remaining must be referred to issuing office. 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The lawyers that we work with procure Woolavington lease extensions and help protect your position. A lease extension can be arranged to be completed to coincide with a change of ownership so the costs of the lease extension are paid for using part of the sale proceeds. You really do need expert legal advice in this difficult and technical area of law. The conveyancing solicitor we work with provide it.
Last year Andrew, started to get close to the 80-year mark with the lease on his basement flat in Woolavington. Having purchased his home 18 years ago, the lease term was of no bearing. As luck would have it, he noticed he needed to take action soon on Extending the lease. Andrew extended the lease at the eleventh hour in April. Andrew and the landlord subsequently settled on the final figure of £6,000 . If he not met the deadline, the premium would have increased by at least £925.
Mr J Jones owned a garden apartment in Woolavington in February 2001. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by ninety years. Identical premises in Woolavington with a long lease were valued around £200,800. The mid-range amount of ground rent was £65 invoiced per annum. The lease came to a finish in 2085. Having 60 years unexpired we approximated the compensation to the landlord to extend the lease to be within £20,900 and £24,200 plus costs.
In 2011 we were called by Mr and Mrs. I Jackson who, having owned a basement apartment in Woolavington in August 2008. The dilemma was if we could shed any light on how much (approximately) premium would be for a 90 year extension to my lease. Comparable properties in Woolavington with 100 year plus lease were worth £260,000. The mid-range ground rent payable was £50 billed per annum. The lease end date was on 12 October 2096. Considering the 71 years outstanding we estimated the premium to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of costs.