Woburn leases on residential properties are gradually losing value. Where your lease has about 90 years remaining, you should start considering the need for a lease extension. 80 years is a significant number: when the remaining term of a lease dips below this level then you begin paying an additional element called marriage value. Leasehold owners in Woburn will usually qualify for a lease extension; however it’s a good idea to check with a conveyancer to check your eligibility. In certain circumstances you may not be entitled. There are also strict deadlines and formalities to comply with once the process has commenced so it’s sensible to be guided by a lawyer during the process.
It is generally considered that a residential leasehold with more than 100 years unexpired lease term is worth approximately the equivalent as a freehold. Where an further 90 years added to any lease with more than 35 years left, the residence will be worth the same as a freehold for decades to come.
| Lender | Requirement |
|---|---|
| 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. |
| 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. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Virgin | 85 years at the time of completion. If it's less, we require it to be extended on or before completion. |
Lease extensions in Woburn can be a difficult process. We recommend you get guidance from a conveyancer and surveyor with experience in this area.
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 dealing with Woburn lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
In 2014 Austin, came dangerously near to the 80-year mark with the lease on his garden apartment in Woburn. In buying his property 19 years previously, the lease term was of no interest. Fortunately, he recognised he would imminently be paying way over the odds for a lease extension. Austin arranged for a lease extension at the eleventh hour last July. Austin and the freeholder via the management company subsequently settled on a premium of £5,500 . If he had missed the deadline, the figure would have become more exhorbitant by a minimum £850.
Last month we were approach by Dr Matthew Adams , who moved into a studio apartment in Woburn in April 2007. The dilemma was if we could estimate the price would likely be for a ninety year extension to my lease. Similar flats in Woburn with an extended lease were in the region of £243,000. The mid-range ground rent payable was £65 invoiced yearly. The lease concluded on 9 March 2089. Having 63 years left we estimated the compensation to the landlord to extend the lease to be within £20,000 and £23,000 not including legals.
In 2011 we were called by Dr C Johnson who, having bought a basement flat in Woburn in May 2002. We are asked if we could shed any light on how much (roughly) price would likely be for a 90 year lease extension. Similar residencies in Woburn with 100 year plus lease were worth £181,600. The average amount of ground rent was £55 collected annually. The lease ran out on 7 October 2078. Taking into account 52 years outstanding we calculated the premium to the landlord for the lease extension to be between £30,400 and £35,200 not including professional charges.