Woolton residential property held on a long lease is a wasting asset because a leaseholder merely owns the property for a period of years.
Leasehold properties in Woolton with over one hundred years outstanding 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 premises. In such situations there is often little upside in buying the reversionary interest unless savings on ground rent and maintenance charges justify it.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| 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. |
| Leeds Building Society | 85 years remaining from the start of the mortgage. |
| Skipton Building Society | 85 years from the date of completion of the mortgage For Buy to Let cases: - lettings must not breach any of the lessee’s covenants; and - consent of the lessor to lettings must be obtained if necessary |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Retaining our service will provide you enhanced control over the value of your Woolton leasehold, as your property will be more valuable and saleable in respect of lease length should you wish to sell. The conveyancing solicitors that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Two years ago Jayden, came very close to the eighty-year threshold with the lease on his basement flat in Woolton. In buying his home two decades ago, the lease term was of no significance. Fortunately, he noticed he needed to take action soon on Extending the lease. Jayden extended the lease just under the wire last June. Jayden and the landlord in the end agreed on sum of £5,500 . If he had missed the deadline, the amount would have gone up by at least £1,100.
Mr and Mrs. R Lefebvre owned a newly refurbished apartment in Woolton in April 2000. We are asked if we could approximate the price would likely be for a 90 year lease extension. Comparative flats in Woolton with 100 year plus lease were valued around £295,000. The average amount of ground rent was £45 invoiced yearly. The lease expired in 2099. Considering the 74 years remaining we approximated the compensation to the landlord to extend the lease to be between £8,600 and £9,800 not including professional charges.
Dr A Baker took over the lease of a basement apartment in Woolton in February 2001. The dilemma was if we could shed any light on how much (roughly) compensation to the landlord would be to extend the lease by a further 90 years. Comparative flats in Woolton with an extended lease were worth £248,000. The mid-range amount of ground rent was £65 collected every twelve months. The lease came to a finish on 15 November 2088. Given that there were 63 years unexpired we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 not including expenses.