Woolwich leases on residential properties are gradually diminishing in value. The shorter the remaining lease term becomes, the less it is worth – and accordingly any extension of the lease becomes more expensive. Most owners of residential leasehold property in Woolwich enjoy rights under legislation to extend the terms of their leases. Where you are a leasehold owner in Woolwich you must investigate if your lease has between 70 and ninety years remaining. In particular once the remaining lease term slips under eighty years, the amount payable for any lease extension increases dramatically as part of the premium you will incur is what is known as a marriage value
It is generally considered that a property with in excess of one hundred years remaining is worth roughly the equivalent as a freehold. Where an further ninety years added to any lease with more than 30 years remaining, the property will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| Chelsea 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. |
| 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. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
The conveyancing solicitors that we work with handle Woolwich 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 lawyer we work with provide it.
In the wake of 9 months of lengthy discussions with the landlord of her two bedroom apartment in Woolwich, Lucy commenced the lease extension process as the 80 year mark was quickly approaching. The lease extension completed in April 2013. The landlord’s fees were kept to an absolute minimum.
Last Summer we were phoned by Mr and Mrs. R Alexander , who took over the lease of a ground floor apartment in Woolwich in March 2008. The question was if we could shed any light on how much (roughly) compensation to the landlord would be to prolong the lease by 90 years. Comparative residencies in Woolwich with 100 year plus lease were in the region of £230,800. The mid-range amount of ground rent was £60 collected per annum. The lease concluded on 7 May 2085. Taking into account 60 years unexpired we calculated the compensation to the landlord for the lease extension to be within £24,700 and £28,600 plus costs.
An example of a Lease Extension case for a Woolwich flat is 46 Credon Road in January 2014. On 11 September 2013 Deputy District Judge Price sitting at the Bow County Court made a vesting order that the freeholder surrender his lease and be granted a new lease of the Premises on such terms as may be determined by the First Tier Tribunal (Property Chamber).The appropriate sum as concluded by the Tribunal was £7225 This case affected 1 flat. The remaining number of years on the lease was 69.77 years.