Unfortunately that a Woore residential lease is a deteriorating asset. The lease value reduces in proportion to its lease length. The extent of this is taken for granted in the early years due to the deflation being disguised by increases in the Woore property market.Where your lease has approximately 90 years left, you need to start considering a lease extension. An important point to note is that it is desirable for lease extension to take place before the term of the existing lease dips under 80 years - otherwise a higher premium will be due. Most leasehold owners in Woore will be able to extend under the legislation; however a lawyer should be able to clarify whether you are eligibility. In some cases you may not qualify. There are also strict timetables and procedures to follow once the process is instigated and you will need to be guided by your conveyancing solicitor from beginning to end of the process.
It is generally accepted that a residential leasehold with over 100 years unexpired lease term is worth roughly the same as a freehold. Where an further ninety years added to all but the shortest lease, the premises will be equivalent in value to a freehold for many years in the future.
| 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. |
| Leeds Building Society | 85 years remaining from the start 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. |
| 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 |
Lease extensions in Woore can be a difficult process. We recommend you get professional help from a conveyancer and valuer well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have a wealth of experience procuring Woore lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Half a year ago Sam, started to get close to the eighty-year mark with the lease on his two bedroom apartment in Woore. In buying his home 19 years ago, the lease term was of no relevance. As luck would have it, he realised he needed to take action soon on Extending the lease. Sam was able to extend his lease just under the wire in April. Sam and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If he had missed the deadline, the sum would have increased by at least £1,075.
In 2010 we were e-mailed by Ms B Hall who, having completed a first floor flat in Woore in October 2006. The question was if we could estimate the price would be for a ninety year extension to my lease. Comparative residencies in Woore with 100 year plus lease were valued about £290,000. The average amount of ground rent was £55 invoiced every twelve months. The lease ended on 3 July 2105. Having 80 years as a residual term we estimated the premium to the freeholder to extend the lease to be between £12,400 and £14,200 plus costs.
Mr and Mrs. R Girard completed a one bedroom flat in Woore in June 2010. The question was if we could shed any light on how much (roughly) premium could be to prolong the lease by a further 90 years. Similar premises in Woore with 100 year plus lease were in the region of £200,800. The mid-range ground rent payable was £65 collected every twelve months. The lease expired in 2085. Taking into account 60 years outstanding we estimated the compensation to the landlord for the lease extension to be between £20,900 and £24,200 exclusive of expenses.