The re-sale value of a leasehold property in Woburn Sands is impacted by how many years the lease has left to run. If it is near to or less than 80 years you should anticipate difficulties on re-sale, so it is advisable to arrange for a lease extension ahead of purchasing. It is preferable to start the process of extending the lease is when a lease still has 82 years to run so that all matters can be finalised ahead of the eighty year threshold. Statute entitles Woburn Sands qualifying lessees to an additional term of 90 years in addition to the unexpired term, at a notional rent (no ground rent). The reason of the valuation is to determine the amount payable by the lessee to the freeholder for the purchase of the lease extension.
It is conventional wisdom that a property with in excess of one hundred years remaining is worth roughly the same as a freehold. Where an additional ninety years added to any lease with more than 30 years unexpired, the residence will be equivalent in value to a freehold for many years ahead.
| 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. |
| 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. |
| Leeds Building Society | 85 years remaining from the start 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 |
| 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. |
Retaining our service will provide you better control over the value of your Woburn Sands leasehold, as your property will be more valuable and saleable in respect of lease length should you decide to sell. The conveyancing solicitors that we work with have a wealth of experience of handling many hundreds of lease extensions or freehold purchase transactions.
Following protracted correspondence with the freeholder of her two bedroom apartment in Woburn Sands, Elizabeth commenced the lease extension process just as the lease was approaching the crucial 80-year mark. The legal work was concluded in October 2015. The freeholder’s fees were kept to an absolute minimum.
Dr W Norbert was assigned a lease of a ground floor apartment in Woburn Sands in May 2007. We are asked if we could shed any light on how much (roughly) price would likely be to extend the lease by a further 90 years. Comparable premises in Woburn Sands with an extended lease were in the region of £265,000. The average amount of ground rent was £50 invoiced yearly. The lease ran out on 25 July 2097. Considering the 73 years as a residual term we approximated the compensation to the freeholder to extend the lease to be between £9,500 and £11,000 exclusive of legals.
In 2013 we were phoned by Mr and Mrs. M Wright who, having acquired a first floor apartment in Woburn Sands in September 2004. We are asked if we could approximate the price would likely be to extend the lease by an additional years. Comparative residencies in Woburn Sands with a long lease were worth £264,000. The average ground rent payable was £60 collected quarterly. The lease ended on 20 June 2077. Considering the 53 years left we calculated the premium to the landlord for the lease extension to be between £37,100 and £42,800 plus expenses.