When it comes to long leasehold premises in Woore, you effectively rent it for a certain period of time. These days flat leases are usually granted for 99 years or 125. Many leasehold owners are unconcerned as this seems like a lengthy period of time, you should think about extending the lease sooner as opposed to later. The general rule is that the shorter the number of years is the cost of extending the lease becomes disproportionately greater particularly once there are fewer than 80 years left. Residents in Woore with a lease nearing 81 years remaining should seriously consider extending it as soon as possible. Once the lease term has below 80 years left, under the current Act the landlord can calculate and charge a greater amount, assessed on a technical calculation, strangely termed as “marriage value” which is payable.
It is conventional wisdom that a residential leasehold with over one hundred years remaining is worth approximately the equivalent as a freehold. Where an additional ninety years added to any lease with more than 45 years remaining, 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. |
| 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. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
| Yorkshire 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. |
Irrespective of whether you are a tenant or a freeholder in Woore,the lease extension experts that we work with will always be willing to discuss any residential leasehold matters and offer you the benefit of their in-depth market knowledge and the close ties they enjoy with Woore valuers.
Jayden owned a high value apartment in Woore being sold with a lease of a little over sixty years outstanding. Jayden on an informal basis spoke with his freeholder a well known local-based freehold company and enquired on a premium to extend the lease. The landlord indicated a willingness to extend the lease to 125 years on the basis of a new rent initially set at £200 per annum and doubled every twenty five years thereafter. Ordinarily, ground rent would not be due on a lease extension were Jayden to invoke his statutory right. Jayden obtained expert advice and secured satisfactory deal informally and sell the property.
In 2014 we were e-mailed by Dr Harry Rose who, having bought a one bedroom flat in Woore in September 2004. The dilemma was if we could shed any light on how much (roughly) premium would likely be for a 90 year extension to my lease. Comparable properties in Woore with 100 year plus lease were worth £235,200. The average amount of ground rent was £45 collected per annum. The lease ended in 2092. Given that there were 66 years outstanding we calculated the compensation to the freeholder to extend the lease to be within £12,400 and £14,200 not including professional charges.
Last Autumn we were approach by Dr Henry François , who bought a garden flat in Woore in June 1999. The dilemma was if we could approximate the price would likely be for a ninety year extension to my lease. Comparative residencies in Woore with a long lease were valued about £275,000. The average amount of ground rent was £55 collected every twelve months. The lease termination date was on 14 September 2103. Given that there were 77 years remaining we approximated the premium to the landlord to extend the lease to be within £13,300 and £15,400 plus professional charges.