As the length of the unexpired term of a Woore residential lease decreases so does its value and therefore the value of your property. Where the residual term has, more than 100 years remaining then this decrease may be negligible however there will become a stage when a lease has fewer than 80 years unexpired as part of the premium you will incur is what is termed as a marriage value. This could increase sharply the cost. It is the main logic behind why you should extend the lease without delay. The majority of flat owners in Woore will meet the qualifying criteria; however a conveyancing solicitor can advise if you are eligible to extend your lease. In limited situations you may not qualify, the most common reason being that you have not been the owner of the property for two years.
It is conventional wisdom that a residential leasehold with more than one hundred years remaining is worth roughly the equivalent as a freehold. Where an additional 90 years added to any lease with more than 30 years left, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Coventry Building Society | 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. |
| TSB | Minimum of 70 years at mortgage commencement, with 30 years remaining at mortgage redemption. |
The conveyancers that we work with procure Woore 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 conveyancer we work with provide it.
Leon was the the leasehold proprietor of a conversion flat in Woore on the market with a lease of just over 61 years left. Leon informally approached his landlord being a well known Bristol-based freehold company and enquired on a premium to extend the lease. The landlord was keen to grant an extension on non-statutory terms taking the lease to 125 years on the basis of an increased rent to £125 per annum. No ground rent would be payable on a lease extension were Leon to exercise his statutory right. Leon procured expert advice and was able to make an informed judgement and handle with the matter and readily saleable.
Ms J Nelson purchased a purpose-built flat in Woore in June 1998. The question was if we could approximate the price could be to prolong the lease by a further 90 years. Comparative homes in Woore with 100 year plus lease were in the region of £166,400. The mid-range ground rent payable was £60 collected every twelve months. The lease lapsed on 6 August 2079. Considering the 54 years remaining we calculated the compensation to the freeholder to extend the lease to be within £32,300 and £37,400 plus legals.
In 2011 we were contacted by Mr D Moore who, having took over the lease of a first floor apartment in Woore in October 2004. We are asked if we could approximate the premium would likely be to extend the lease by ninety years. Similar homes in Woore with 100 year plus lease were worth £227,800. The mid-range ground rent payable was £45 collected yearly. The lease termination date was on 14 July 2090. Given that there were 65 years remaining we estimated the premium to the landlord for the lease extension to be within £13,300 and £15,400 not including legals.