When it comes to long leasehold premises in Woolwich, you are in fact renting it for a certain amount of time. In recent years flat leases typically tend to be for 99 years or 125. Many leasehold owners become complacent as this seems like a long period of time, you should think about extending the lease sooner rather than later. The general rule is that the shorter the lease is the cost of extending the lease becomes disproportionately more expensive notably when there are less than eighty years left. Residents in Woolwich with a lease drawing near to 81 years left should seriously consider extending it without delay. Once the lease term has less than eighty years outstanding, under the current legislation the landlord can calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is due.
Leasehold premises in Woolwich with in excess of 100 years left on the lease are sometimes referred to as ‘virtual freehold’. This is where the lease value the same as a freehold interest in your premises. In such situations there is often little upside in purchasing the freehold unless savings on ground rent and service charges justify it.
| 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. |
| 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. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must also be not less than 75 years at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Retaining our service gives you better control over the value of your Woolwich leasehold, as your property will be more valuable and marketable in relation to the lease length should you want to sell. The lawyers that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Alex owned a conversion flat in Woolwich being sold with a lease of a little over 72 years remaining. Alex on an informal basis approached 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 extend the lease to 125 years subject to a new rent initially set at £150 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be payable on a lease extension were Alex to invoke his statutory right. Alex procured expert legal guidance and was able to make a more informed decision and handle with the matter and sell the property.
Mr W Turner owned a ground floor apartment in Woolwich in April 2009. We are asked if we could approximate the premium would be for a ninety year extension to my lease. Comparative homes in Woolwich with 100 year plus lease were in the region of £257,800. The mid-range ground rent payable was £65 billed quarterly. The lease finished on 19 January 2091. Given that there were 65 years as a residual term we calculated the premium to the landlord for the lease extension to be between £18,100 and £20,800 plus fees.
An example of a Lease Extension matter before the tribunal for a Woolwich property 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 related to 1 flat. The unexpired term was 69.77 years.